In the Netherlands they call it cucumber time, in Germany it's the summer hole and in Britain it's called the silly season, but this August wasn’t exactly a slow news month for the European economy. Greece was back on the agenda, be it colleagues extolling the delights of Santorini, or the German Finance Minister acknowledging that the Eurozone country needs a third bail-out to cover financing needs through 2016. Market reaction was muted, because this was already anticipated, but also due to encouraging signs of economic recovery elsewhere. A sharper than expected rise in German business sentiment adds to encouraging signs that Europe’s largest economy remains healthy ahead of its September federal election and supports the view that last quarter’s increase in Eurozone GDP was more than just a blip. These positive developments are feeding through to the property sector. Occupational markets are increasingly shoring up whilst lending to property is showing signs of new life. Property investment is on the rise across Europe with German open-ended funds having registered large net inflows and cross-border activity having returned to long-dormant Italy, Spain and Ireland. As we enter the seemingly busiest month of the year, Europe just keeps getting more interesting.
Source : CBRE Global Investors