- November 1, 2014: Vol. 8, Number 10

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Optimistic investment outlook for Europe

by Richard Fleming

200 investors at Knight Frank’s European Breakfast on 17 September heard that investment volumes across Europe are set to increase further, despite a mixed economic picture. The case for European property remains strong, the firm says, with rental growth and yield improvement forecast in key cities across the continent.

With the exception of Frankfurt, capital values in all the major European cities remain below their peaks, but are expected to continue rising on the back of forecast rental growth and downward yield shift. Prime yields are expected to hold firm or, in some cases, improve further in places like Amsterdam, Brussels, Madrid and Milan. Meanwhile, rental growth is expected to be most significant in the City of London but also positive in Frankfurt, Milan and Madrid. Elsewhere, for Paris, Amsterdam, Brussels and London’s West End, rents are forecast to hold steady.

During a live poll of the 200 investors, Spain was voted as this year’s top target count

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