Europe could bounce back with V-shaped recovery
Prime real estate values, transactions and rents will 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”.
“It is important to note that many economies are implementing fiscal or monetary stimulus to fight the current situation and that therefore stock markets may recover quickly,” says AEW.
In the meantime, with weak immediate global growth set to push