Too often as business professionals we focus on the here and now, whether it’s monthly jobs reports, central banking moves on interest rates or bigger political issues such as Brexit, presidential elections and other global events.
From the Current Issue
The outlook for the European commercial real estate market is one of the hottest topics in the financial markets following the sector’s record performance last year. Early in 2016, market trends were largely underwhelming.
The lead story on central Europe in the June 2016 issue of Institutional Real Estate Europe pointed to the factors that are pulling real estate investors into the region, with Poland and the Czech Republic forming the principal focus of attention, and those factors have since gained in significance.
Three funds with an investment focus on Germany launched during May and a further two funds for the German market closed.
According to EPRA, the European Public Real Estate Association, the listing of Italian property company Coima on the country’s MTA exchange in May, following a €215 million IPO, could result in a renaissance in Italy’s tiny listed real estate sector.
MSCI’s IPD Global Annual Property Index for 2015 shows that real estate returned 10.7 percent last year, compared to 2.6 percent for equities and 1.6 percent for bonds.
Alternative property has become a bigger hunting ground than ever for investors as they increasingly diversify away — need to diversify away, on yield grounds — from traditional real estate. Investment levels reached a record last year, with one of the United Kingdom’s biggest advisory firms forecasting even higher levels of deal activity in 2016.
The UK healthcare estate encompasses a diverse range of properties, spanning general practitioner surgeries to senior living units and hospitals to care homes.
The post–global financial crisis recovery of Europe’s commercial real estate market since 2008 established a raft of opportunities within commercial mortgages, across a range of risk and return profiles that are balanced by favourable relative value versus alternative asset classes.
Real estate’s recent strong performance has been due to a sustained period of slowly-improving occupier market fundamentals during the long, drawn-out bumpy economic recovery following the global financial crisis.
The United Kingdom’s 23 June referendum on membership of the European Union is the last in a series of events over the past 12 months that has heightened uncertainty in the London property market, which has contributed to the reduced levels of property transactions across all sectors of the real estate market.