European market remains resilient despite upcoming recessions
Europe's real estate market fundamentals remain strong despite likely forthcoming recessions across the continent.
In its Strategy and Anatysis Outlook 2023 report, LaSalle Investment Management predicts that although the property market will continue to read just, supply and demand remains largely positive in Europe in many sectors, cushioning any blows from a fall in valuations and upward adjustment in yields. "The demand to relocate, expand or upgrade space continues, driven by European occupiers play ing catch-up postcpandemic, long-standing shortages in certain property sectors and tightening limitations on land use," says the report. In the manager's assessment, capital market stresses that have induced the repricing in European real estate and a normalisation and acceptance of the new reality of higher capitalisation rates will emerge in the latter half of 2023. In the meantime, the report says that value-add capital will