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Q1 European commercial investment: in search of the right product - May 2016

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Q1 European commercial investment: in search of the right product - May 2016

Europe is now entering its fourth year of recovery and the EU experienced strong GDP growth throughout the first quarter thanks to loose monetary policies, improving labour markets and low oil prices. GDP across the EU is expected to grow by 1.9% in 2016, however political factors such as the British referendum, the repercussions of the refugee crisis and other local political uncertainties could make the road to recovery bumpy.

The stagnating European economy, the unpredictable outcome of geopolitical tensions in Europe, the volatility of the stock markets and investor reservations around the valuation of major tech companies, could be adequate reasons to affect negatively investor sentiment and delay decision making and money spending.

The numbers indicate that this might be the case as the total commercial investment volume in Q1 2016 was overall about 30% less than the same period last year at about €36.8bn in EU 15. Nevertheless our local experts report that demand for real estate
remains strong amongst investors, the pricing level of the closed deals is still keen and the main burden to high turnover is the lack of good quality assets on offer.

Source : Savills

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