BNP Paribas Real Estate analyses the main office and investment markets in Europe in the first half of 2018
European Economic Growth: Slow and steady
The strong global growth rates of late 2017 slowed slightly in early 2018, reflecting tighter monetary conditions and emerging capacity constraints. Growth assumptions for the world economy remain at a high level for 2018 underpinned by a powerful combination of job creation, rising company profits and easy access to financing. The slowdown in Eurozone growth mirrors Global economic trend. Consequently, the ECB has already announced that it does not intend to raise interest rates before summer 2019. The
attainment of inflation with the central bank’s target still requires a high level of monetary support.
Ongoing momentum for investment
Commercial real estate investment in Europe advanced again during H1 2018 to reach €115.4bn, 2% above the same period in 2017. “2017 was the record year for investment volumes in Europe and 2018 began strongly, notably with some very large office deals. Global investors believe in the positive economic environment and the healthy occupier markets in Europe”, says Larry Young, head of International Investment Group. This confidence benefited the office sector (+9%), reflected in a share of 44% of total
investment volume. The retail investment volume stabilized while industrial & logistics sector fell (-16%) to 12% market share, however this was from a very high level in 2017.
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