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