Europe's real estate market fundamentals remain strong despite likely forthcoming recessions across the continent.
From the Current Issue
We have seen a slowdown in the deployment of capital in the real estate sector in the final quarter of 2022, as many investors are "pausing", pending more clarity around market conditions and asset pricing.
During the past few months, investors, managers and consultants participated in Editorial Advisory Board meetings.for each of Institutional Real Estate, Inc's regional publications to discuss the most pressing issues facing the real estate investment industry. The editorial board Institutional Real Estate Americas met in Southern California on 6-8 September; the editorial board of Institutional Real Estate Europe met in London on 27-29 September; and the editorial board of Institutional Real Estate Asia Pacific met in Singapore on 25-27 October. Below, the publications' respective editors - Loretta Clodfelter, Marek Handzel and Dr Jennifer Molloy, discuss high lights from the regional events.
Up until today, equity release has been a virtually untapped market in Germany. The practice of releasing the capital tied up in German residential property with out the requirement to move out, however, has enormous potential.
Despite the current challenges facing real estate, not all segments of the market are identical. As the economic repercussions of the COVID-19 crisis and the war in Ukraine are felt globally, driving inflation to 40-year highs, and interest rates to levels not seen since 2008, student housing continues to perform strongly.
High flow through (HFT) real estate is one of the largest segments within the industrial and logistics real estate sector in Europe.
Construction output in the euro zone has experienced its most pronounced fall since May 2020, at the height of the COVID-19 crisis, according to the latest S&P construction index figures.
A new survey run by CBRE, which involved more than 20,000 people worldwide, has revealed that wellbeing, location, ESG and hybrid working will significantly influence real estate decisions from now on. The majority of survey respondents (67 percent) based in Europe told CBRE that they want shorter commute times, and 54 percent want their official places of work to be in better, more convenient locations. Across Europe, 32 percent of respondents are planning on moving in the next two years, and 42 percent of that group are planning to relocate closer to urban cores.
The coming months are likely to place pri vate renters under unprecedented levels of stress. The average rent is predicted to rise to a level equivalent to 62 percent of the average renting household's post-tax income in the United Kingdom, according to Hamp tons. Unsurprisingly, value for money is fast becoming a predominant concern.
I've been seeing several pundits lately suggesting that real estate investing has become more risky today. What is true is that all investments, other than sovereign issuances such as Treasuries, are risky.