The near-term outlook for European economic growth has deteriorated as governments struggle to reassure markets that they have a credible and long-term solution to the sovereign debt crisis.
Real estate transaction volume continues to be dominated by large office and retail deals, mainly at the prime end of the market.
Investment volumes are set to reach historical averages in 2011 as the
amount of equity targeting European real estate has increased.
Europe’s economies surprised on the upside in 2010.
The recovery from the global financial crisis was always likely to be a long and drawn-out affair
Recent news on both the wider economy and real estate markets has generally been positive.
Investor sentiment in the private markets continues to improve, despite weak economic data.
There is still a large amount of uncertainty as to the speed and shape of Europe’s economic recovery over the coming quarters.
Despite improvements in the wider economy, the European real estate market is facing difficult times.
After the dark clouds from the financial crisis, there is a growing sense that the storm is clearing
Sentiment toward European real estate continues to remain poor as banks restrict lending and the space markets weaken.
European real estate markets are now facing their most difficult trading conditions
European real estate markets face a big challenge, contending with a credit crunch while the space markets are deteriorating
The majority of Europe’s economies posted weaker economic growth in 4Q07, reflecting the turmoil in the credit markets and the effects of a stronger euro on consumer spending.
As anticipated, most of Europe’s economies are entering a period of slower economic growth. Even while the fallout from the credit market turmoil has yet to be fully determined, banks have imposed tougher lending and pricing conditions on both businesses and households as they look to reprice risk.