European real estate shows positive growth

European real estate markets are good, with the economic growth being strong and the inflation high, while bond yields are near floor level and should stay relatively low, according to BNP Paribas REIM in its The Lighthouse H2 2021 – A European Property Market Outlook.

“Many institutional investors are eager to allocate more to private and real assets to cope with the negative real rates, and real estate clearly fits within this strategy. One thing that this market analysis shows is the demand of investors regarding ESG issues, on which BNP Paribas REIM is committed through a roadmap and solid objectives to achieve by 2025,” said Maarten van der Spek, global head of strategy for BNP Paribas REIM.

The key findings include:

     1. Inflation will be structurally higher until at least 2023 The economic rebound following the COVID-19 crisis is looking strong in Europe with the GDP growth to be positive in a