Growth will come: The strategic outlook for European real estate remains positive
Europe remains in the early stages of economic recovery, with the pace of growth continuing to disappoint. Nonetheless, there is an expectation that a stronger recovery will gradually take hold over the coming few years, leading to job growth and higher demand for real estate space.
Deflation remains a major concern but this has also provided central banks with room to loosen monetary policy further. This has led to a considerable reduction in the outlook for euro zone bond yields, which are set to remain extremely low for much of the rest of the decade — and, according to Oxford Economics, boosting the relative attractiveness of real estate.
Having seen a period of relative quiet, politics in 2015 will almost certainly be more disruptive. The evolution of events in areas such as Greece and Ukraine will need to be monitored closely.
Occupier market fundamentals
European occupier market fundamentals have reached a turning p