By Rob Starr, Content Manager, Big4.com
German cities dominate the investment prospects for Europe’s commercial real estate sector as investors continue to favour safe haven locations according to Emerging Trends in Real Estate® Europe 2013, a real estate forecast published jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC).
London, which is seen by many as Europe’s ultimate safe haven market, is the largest riser in this year’s report, taking third position. Approximately 80 per cent of the respondents surveyed for the report believe that the eurozone crisis has presented their own business with new opportunities.
Simon Hardwick, real estate partner at PwC Legal, said:
“Our report shows that real estate investors are approaching opportunities with a new mindset, conscious that the environment in which they are operating is ‘the new normal’ and is set to stay the same for some time yet. Investors face ongoing challenges but are cautiously optimistic about their prospects for the first time in many years.”
Core properties might be hard to find but there are pockets in key cities that appeal to dominant occupiers such as telecommunications, media and technology (TMT) firms and creative enterprises. Banks are more willing to release good assets in need of capital expenditure and clever asset management, before values decline further.