Demand is picking up for European CRE, several different sources suggest, according to our News summary 30 April. Levels will vary between sectors and locations, but offices, food retail and sustainable buildings could all attract rising interest.
Europe CRE to benefit from economic improvements
By: PropertyFundsWorld
Summary: The European CRE sector is set to strengthen, as the economy improves through the rest of the year, but momentum in the main sectors is likely to differ. Demand for rental real estate is set to remain solid, with the strongest growth rates in Germany, the Netherlands, and the UK. Demand for offices and their prices are likely to pick up, particularly in the UK, Switzerland and France. The retail sector is likely to be stable. The industrial and logistics sector should experience strong growth
Key quote: “In particular, the light industry and urban logistics real estate segments would continue to benefit from the trend in favour of e-commerce.”
Source: https://www.propertyfundsworld.com/2021/04/27/299354/european-real-estate-differences-between-sectors-persist-2021-says-rothschild
€800m bet on European offices
By: FT
Summary: Top asset manager Axa IM Alts has raised almost €800m to develop offices in Europe, believing that demand for modern workspaces will bounce back after the COVID-19 pandemic. Its focus is on the UK, Germany and France.
Key quote: Ian Chappell, head of development and value-added funds at Axa IM Alts, says, “To launch this kind of development strategy you have to believe there’s a future for offices.”
Source: https://www.ft.com/content/2d435594-318b-4cb8-8201-2c46c8418747
Surging investment in sustainability
By: Bisnow.com
Summary: Venture capital firms this year have begun raising hundreds of millions of dollars that they plan to deploy into proptech startups aimed at taking on climate change by making buildings more sustainable. The surge of investment in Europe and elsewhere comes as experts see multiple coinciding forces that will push developers and landlords to adopt green building technologies in the coming years.
Key quote: Technologist and experienced venture capitalist, 2150 partner Christian Hernandez Gallardo, says, “Making existing buildings more efficient is a priority with billions attached to it.”
Source: https://www.bisnow.com/national/news/technology/money-pouring-into-climate-focused-proptech-amid-cre-sustainability-push-108417
Best agency in South-East Europe
By: Business-Review.eu
Summary: Real estate consultancy firm Avison Young has been named Best Agency in South-Eastern Europe at the SEE Real Estate Awards Gala, thanks to the company’s exceptional results and growth during the past year.
Key quote: David Canta, Principal Avison Young Romania and the Czech Republic, says, “Four years ago, Avison Young established the first office in the region in Romania, followed by Poland, Hungary and recently the Czech Republic and Bulgaria. I am very happy that we have achieved the goal of covering the entire Central and Eastern Europe in such a short time and this award is a recognition of our dynamic expansion.”
Source: https://business-review.eu/property/avison-young-named-best-agency-at-the-see-real-estate-awards-gala-218958
Food and grocery property core in retail
By: Savills
Summary: The food sector is becoming the new core in retail property investment, says Savills. Last year, for the first time, investments in supermarkets, hypermarkets and food discount stores accounted for a record 21% of total European retail activity, up from a five year average of 7%. Supply may not be able to meet demand.
Key quote: George Coleman, Associate, Savills Regional Investment Advisory EMEA, says, “The defensive characteristics and the operational resilience of the sector will continue to attract an increasing number of buyers. Some product may come on the market through sale and leasebacks, but overall supply may not be able to meet demand. In view of the further intensifying bidding war, we expect prime yields to move in further during this year.”
Source: https://www.savills.co.uk/insight-and-opinion/savills-news/313606/savills–food-and-grocery-the-new-core-in-retail-property-investment
