The EMEA Real Estate Market Outlook 2020: Midyear Review report provides insight on the key trends that our experts think will affect the European property industry over the remainder of this year and beyond.
Clearly the lockdown measures imposed to slow the spread of COVID-19 have had enormous impacts on economic activity and have slowed real estate markets, but this has also been a catalyst for changes in occupier behaviour across all sectors, offering opportunities to those with strategic flexibility.
Some of the report’s key points are:
-While European economies took significant hits in the first half of the year, forward-looking indicators support our view of a bounce-back in economic activity in the second half of 2020.
-Investment volumes dipped sharply in the second quarter but there remains ample unallocated capital and latent demand for European prime property.
-Labour markets are clearly weakening and reductions in headcount will temper demand for office space in the short-term, although curtailed development will limit the resulting rise in vacancy.
-Among a shifting in occupier priorities, we will see an acceleration of the trend towards greater provision of wellbeing measures in the workplace over the coming year.
-The logistics sector is well positioned to outperform most other sectors owing to strong fundamentals and robust demand.
-Consumers and retailers alike are being forced to adapt their behaviours. Even so, exceptional prime retail assets are still investment-worthy across different retail categories.
-The hotels sector will see a competition reset among major providers, with interest in serviced apartments strengthening.
-Institutional investors are increasingly turning towards the multifamily sector, attracted by stability of cashflow even in times of uncertainty.