To read this full article you need to be subscribed to Newsline.
Sign in Sign up for a FREE subscriptionValues, transactions and rents to all come down, but Europe should be set for V-shaped recovery
Prime real estate values, transactions and rents could all drop as a result of the COVID-19 pandemic crisis, but Europe is in a good position to bounce back from a recession with a V-shaped recovery.
AEW has investigated the potential implications of the coronavirus crisis for the commercial property market by taking a closer look at previous bond and stock-market corrections’ impacts on prime rents, investment volumes, and prime property values and suggested that all three are set to take a hit.
However, in contrast to the GFC, the manager says the current crisis could prove to be a short-lived one in Europe as economic fundamentals were strong at its outset, “possibly signalling a V-shaped recovery”.
In the meantime, with weak immediate global growth likely to push some of the leading European economies into recession,