Activity in the Euro zone is stabilising at a low level as the UK posts two quarters of slight negative growth.
The Greek elections, greater anti-austerity calls, and renewed tensions in the Spanish banking system pose greater downside risks to the economic outlook.
The lack of employment growth will weigh on absorption but in conjunction with constrained supply will result in stable rents.
A dearth of prime assets to satisfy investor demand will drive interest in non-core quality assets whereas debt financing and loan portfolios are attracting investors seeking higher yields.
Source : Amundi Asset Management