{"id":931,"date":"2019-04-03T12:15:31","date_gmt":"2019-04-03T12:15:31","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=931"},"modified":"2019-04-03T12:15:31","modified_gmt":"2019-04-03T12:15:31","slug":"positive-sentiments-among-investors-in-the-european-real-estate-market-76898","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/positive-sentiments-among-investors-in-the-european-real-estate-market-76898\/","title":{"rendered":"Positive sentiments among investors in the European real estate market"},"content":{"rendered":"<p><strong>Demand for good quality commercial space driven by the expansion of the technology and e-commerce sector compensate pessimistic economic forecasts for Europe. Sentiments among investors are positive and the industrial market has the highest yields, according to\u00a0report\u00a0 \u201eEuro Cities\u201d prepared by Gerald Eve International and AXI IMMO.<\/strong><\/p>\n<p>AXI IMMO, the\u00a0Polish consulting firm active on the commercial real estate market for\u00a010 years and Gerald Eve International prepared\u00a0a report concerning\u00a0the commercial real estate sector in Europe. The publication \u201eEuro Cities\u201d drawn\u00a0up by experts from 17 European countries analyses data, determinants and\u00a0 development prospects of the investment market in 31 cities with\u00a0the\u00a0greatest potential.<\/p>\n<p>The authors of\u00a0the \u201eEuro Cities\u201d report presents \u00a0European commercial real\u00a0estate\u00a0market regarding Europe\u2019s current political and economic situation, as well as global. The\u00a0last months of\u00a02018 and 2019 saw deterioration\u00a0of economic indicators in\u00a0most\u00a0European countries, most notably in Germany with automotive\u00a0sector problems. \u00a0The economic slowdown on\u00a0the Old Continent\u00a0was\u00a0the result of\u00a0\u00a0international trade problems, as well as of social\u00a0tensions. The global uncertainty rise\u00a0due\u00a0to worsening\u00a0 relationships between Russia, the USA, and China. In Europe protests in\u00a0France and strikes in Portugal couse an\u00a0increased\u00a0vigilance among investors. However, the biggest challenge is a prolonged absence of any agreement on Brexit in\u00a0the\u00a0British Parliament, the consequences of which are difficult to foresee and can have positive (especially for the competitive price of Central\u00a0and Eastern Europe) and\u00a0negative.<\/p>\n<p>According\u00a0to experts from Gerald Eve International, despite the political\u00a0tensions the results of\u00a0the investment\u00a0market in real estate are good and shows positive moods among investors.<\/p>\n<p><strong>Renata Osiecka<\/strong>, Managing Partner at AXI IMMO and \u00a0one of the\u00a0authors\u00a0of\u00a0the \u201eEuro Cities\u201d \u00a0report explains: \u201cIt\u00a0is\u00a0clear that the\u00a0current geopolitical situation has an impact for investors sentiments, but the most\u00a0important\u00a0determinant\u00a0of decisions are commercial marker results. It\u00a0is\u00a0a\u00a0fact\u00a0that the demand in this market segment remains high. It reduces\u00a0risk and maintaines activity\u00a0in\u00a0the investment market, which is full of financial capital and the\u00a0entities\u00a0willing to\u00a0invest in several types of asset.\u201d<\/p>\n<p><em>The <\/em>\u201eEuro Cities\u201d publication enables the comparison and in-depth analysis of data and trends in the lease market and their impact\u00a0on\u00a0investment activity in office and industrial real estate segments.<em>\u00a0<\/em><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/positive-sentiments-among-investors-in-the-european-real-estate-market-76898\/#Office_assets_still_strong_thanks_to_new_technologies\" >Office assets still strong thanks to new technologies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/positive-sentiments-among-investors-in-the-european-real-estate-market-76898\/#Investors_targets_industrial_market_due_to_e-commerce_sector\" >Investors targets industrial market due to e-commerce sector<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Office_assets_still_strong_thanks_to_new_technologies\"><\/span>Office assets still strong thanks to new technologies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The office assets are still the most frequently chosen by investors among commercial real estates, the report by AXI IMMO and Gerald Eve International\u00a0reads. The demand in the office space market remains\u00a0strong\u00a0driving by the media and technology sector.<\/p>\n<p>According to the report, an additional 2.8 million office-based jobs will create over the next five years within the European Union (excluding the UK), which will help maintain a strong demand for new space. \u00a0Among\u00a0European capitals presented in the publication, the highest prime rental\u00a0rates per year are in London (1,312 EUR \/sqm.) \u00a0and Paris (819 EUR\/sq m.), and the lowest\u00a0in Bratislava (192 EUR\/sq m.) and Prague (258 EUR\/sq m.). In Warsaw the prime rental rents stand at 492 EUR per sq m. per year. An increase\u00a0in\u00a0rents\u00a0is\u00a0expected\u00a0in 11 of\u00a0the 31 analysed\u00a0cities. In 20 cities\u00a0the current level\u00a0of\u00a0the rents is expected. Falling prime\u00a0rental rates \u00a0are forecasted only in Instanbul.<\/p>\n<p>As regards the prime yields during\u00a0the period from\u00a0Q3 \/\u00a02017\u00a0to\u00a0Q4 \/\u00a02018, a decrease was marked in 22 office space markets, the\u00a0same level of yields was maintained\u00a0in 9 cities and only in Stambul was noticed an increase. The highest prime yields are in Bratislava (6,3%) and Instanbul (6%), the lowest are in Paris (3,2%)<\/p>\n<p>Until the end of 2019 maintaining current yield levels in \u00a014 of\u00a0the 31 analysed\u00a0cities are expected. The fall is for 6 cities forecasted, including\u00a0but not limited to: Bratislava, Paris and Vien. Only in Instanbul\u00a0 experts predicts\u00a0an\u00a0increase\u00a0of\u00a0yields.<\/p>\n<p>Office assets remains the most \u00a0wanted product, but is\u00a0diversification of\u00a0 portfolios is more and more observable\u00a0throughout Europen markets. The Its popularity of industrial and alternative asset classes is\u00a0increasing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Investors_targets_industrial_market_due_to_e-commerce_sector\"><\/span>Investors targets industrial market due to e-commerce sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The warehouse market in Europe enjoys high tenant activity. Demand for warehouse and logistics space is driven by changes in consumer habits, the expansion of e-commerce and the related development of last mile logistics, reads the \u201eEuro Cities\u201d report.\u00a0 The highest rents for logistics space are maintained, as in the office sector, in London (179 EUR\/sq m per year) and Dublin (100 EUR\/sq m per year). The lowest rental rates in the list of capitals are listed in Warsaw and Instanbul (in both cities 100 EUR\/sq m per year).\u00a0 In the warehouse market, the increase in prime rents in 14 cities is expected, including in London, Manchester, Lisbon, Amsterdam, Hamburg, Brno, as weel as in the Polish cities studied, i.e. in Warsaw and Wroclaw. The maintenance of rents at the same level is forecasted, among others in Berlin, Frankfurt, Pargue, Brussels or Copenhagen. In the group of cities surveyed, only two &#8211; Istanbul and Bratislava, show a downward trend in terms of rental rates for warehouse space. \u00a0High activity of tenants on the warehouse market determines the interest in industrial assets among investors.<\/p>\n<figure id=\"attachment_144\" aria-describedby=\"caption-attachment-144\" style=\"width: 300px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-144\" src=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Renata-Osiecka-300x200.jpg\" alt=\"Renata Osiecka\" width=\"300\" height=\"200\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Renata-Osiecka-300x200.jpg 300w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Renata-Osiecka-768x512.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Renata-Osiecka-1024x683.jpg 1024w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Renata-Osiecka-696x464.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Renata-Osiecka-1068x712.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2017\/02\/Renata-Osiecka-630x420.jpg 630w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-144\" class=\"wp-caption-text\">Renata Osiecka, Managing Partner AXI IMMO<\/figcaption><\/figure>\n<p><em>&#8220;Only in Poland he total transaction value amounted to EUR 1.8 billion, which was almost twice as high as in the previous year. It is worth adding that over EUR 1.3 billion were portfolio acquisitions, which is related to the profile of investment platforms.<\/em><em>&#8220;<\/em> \u2013 comments <strong>Renata Osiecka<\/strong> from AXI IMMO.<\/p>\n<p>During\u00a0the period from\u00a0Q3 \/\u00a02017\u00a0to\u00a0Q4 \/\u00a02018 a drop in prime yields in 28 warehouse markets was noticeable. In 2 of the surveyed cities yields remained at the same level and only in one city there was an increase. The highest prime yields are in Instanbul (10%), and Bratislava (7%) the lowest are in London (3,5%). The Central and Eastern European market is becoming more and more popular among investors from Asia, who rate it as safe and ensuring higher return rates on investments. In Poland further compression of yields is visible, the best e-commerce prime projects have a yields of 5.0-5.5%, in the case of portfolio purchases, the rates are higher by 100-150 basis points.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Demand for good quality commercial space driven by the expansion of the technology and e-commerce sector compensate pessimistic economic forecasts for Europe. Sentiments among investors are positive and the industrial market has the highest yields, according to\u00a0report\u00a0 \u201eEuro Cities\u201d prepared by Gerald Eve International and AXI IMMO. AXI IMMO, the\u00a0Polish consulting firm active on the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[2801,128,178,160,179,174,181,2772,47,2841,2823,314,2679,175,64,285,172,127,34,2727,82],"class_list":["post-931","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-amsterdam","tag-axi-immo","tag-berlin","tag-brexit","tag-brussels","tag-copenhagen","tag-dublin","tag-e-commerce","tag-european-union","tag-frankfurt","tag-gerald-eve-international","tag-london","tag-media","tag-paris","tag-poland","tag-portugal","tag-prague","tag-renata-osiecka","tag-russia","tag-usa","tag-warsaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=931"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/144"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}