The Q2 2017 RICS Global Commercial Property Monitor shows sentiment in the real estate sector remains generally upbeat in the majority of markets reported on in this survey. Both the headline Occupier Sentiment Index* (OSI) and Investment Sentiment Index* (ISI) were positive in 23 of the 32 countries tracked (charts 1 and 2), with roughly similar proportions showing further improvement against the most recent readings. Not surprisingly, this pattern was also broadly replicated in the city level data which is highlighted in charts 3 and 4.
Once again, European cities continue to lead the way both on the occupier and investment sides of the market. Included in this group are Berlin, Budapest, Madrid, Amsterdam, Prague and Dublin. Their prominent position has been helped by the generally positive run of macro newsflow, which has seen economic growth expectations revised upwards, alongside the ongoing quantitative easing programme of the European Central Bank (notwithstanding recent suggestions that this could soon begin to be scaled back).
In terms of twelve month projections across the continent, respondents are most upbeat on rental growth prospects in Dublin, with a net balance of 69% of contributors envisaging an increase. Munich (61%), Budapest (59%) and Madrid (59%) also returned particularly strong expectations readings. At the same time, these four cities also displayed the most elevated capital value expectations compared to all other European cities tracked.
Source : RICS