If the final quarter of 2020 is anything to go by, the future of the London office market looks promising. According to a recent report by Knight Frank, the London office market saw almost £5 billion (€5.8 billion) of transactions in the final quarter of 2020 alone. But do these figures give us the full picture? And is the momentum set to continue?
I t has been a year now since we produced a live face-to-face event, our VIP Europe programme, conducted at the Hotel Arts in Barcelona. One of our keynote speakers for that event was Chris Kutarna, an Oxford Adult Education professor and co-author of the bestselling nonfiction work, Age of Discovery.
The generally superior income returns and long-term liability matching characteristics of real estate investment are a familiarly compelling proposition. And given the prolonged “lower-for-longer” environment, the fact that appetite for the asset class remains unshakably robust should come as little surprise.
When the UK and other European countries followed Italy into lockdown last March, there was not much about day-to-day life that did not seemingly change completely overnight. From commuting into the office on a daily basis and visiting cafés and restaurants with some regularity, we were suddenly all homebound with essential retail becoming the extent of our travels.
From Amsterdam to Zurich, many cities across Europe have been dynamos of economic and population growth over the past decade, leading to soaring residential property prices, rising rents and increasing interest from investors, particularly for build-to-rent assets
We are starting to see, with some certainty, where life post-virus may head. That, in turn, is providing firmer ground for real estate investors. In the darkest days of the coronavirus pandemic, investors were frantically attempting to ascertain valuations based on cashflows that were shifting, fast. Real estate is prized as an asset class that will hold its value, but has it delivered, and where do values now stand?
Breaking with custom, the most recent Institutional Real Estate Europe editorial board meeting was held virtually between 15 and 18 February. Taking place four months later than usual, the convention brought 63 key real estate investment decision-makers together to discuss the implications of the COVID-19 crisis.
Ares has raised €573 million for its European Property Enhancement Partners III (EPEP III) fund, meaning that it is more than halfway to reaching its €1 billion fundraising target.
Recent activity in the European self-storage market has highlighted the appeal of the sector to investors who are looking closer at niche and alternative real estate asset classes.
Prime net yields of 6 percent or more in emerging logistics markets are attracting the attention of capital allocators.
As the function of the office changes fundamentally to support more formalised working-from-home arrangements, it will become a tool with which to market a business to both potential employees and clients.
Urbanisation is set to slow down in Europe’s major cities, as the trend towards suburbanisation engulfs the continent.