Germany and UK are top investment prospects for 2017
Germany and the UK will have the most promising commercial real estate markets in Europe in 2017, according to a study by Colliers International.
Colliers’ European Investment Market Outlook, which ranked European commercial property markets based on their stability, growth and yield, said that there is continued competition for real estate, with global funds under management totalling $4.9tn so far this year.
The Nordic markets were ranked first for European stability, ahead of major players like Germany, the UK and France, which could face years of political volatility.
Germany and the UK will have the most promising commercial real estate markets in Europe in 2017, according to a study by Colliers International.
Colliers’ European Investment Market Outlook, which ranked European commercial property markets based on their stability, growth and yield, said that there is continued competition for real estate, with global funds under management totalling $4.9tn so far this year.
The Nordic markets were ranked first for European stability, ahead of major players like Germany, the UK and France, which could face years of political volatility.
However, the study said Finland, the Netherlands and Belgium had the “most promising” balance between risk and return as the Nordics’ stability led to low yields.
Germany and the UK headed the list for investors looking for long-term demand and growth based on GDP, employment and demographic change, while yield-hungry investors have started expanding into Central and Eastern Europe.
Richard Divall, head of EMEA cross-border capital markets at Colliers International, said: “The next three months is set to be a landmark time for Europe and with the markets anticipating the unexpected, perspectives for early 2017 could well change again.
“Equally, parts of Europe still have to manage out a significant legacy of bad debt, with a number of banks at risk of failing, including Deutsche Bank and Monte dei Paschi si Siena. The impact of these banks failing, or requiring a bail-in or out, could significantly adjust the outlook for markets, particularly for Italy.”
Country
Politics rank
Macro rank
Demographic rank
Stability & growth rank
Germany
8
1
5
1
United Kingdom
9
3
2
2
France
11
2
3
3
Netherlands
6
7
8
4
Sweden
2
10
11
5
Norway
1
12
16
6
Switzerland
3
13
13
7
Spain
19
4
7
10
Belgium
10
11
10
12
Italy
20
5
6
14
Austria
7
14
15
11
Poland
17
8
9
16
Finland
4
18
21
8
Ireland
13
9
18
13
Turkey
27
6
1
19
Denmark
5
19
22
9
Czech Republic
14
15
23
15
Slovakia
15
16
24
18
Portugal
21
22
14
22
Romania
22
20
17
23
Estonia
12
29
28
17
Russia
29
26
4
28
Greece
26
17
19
27
Lithuania
16
25
30
20
Croatia
23
21
25
24
Hungary
25
24
20
26
Latvia
18
27
29
21
Bulgaria
24
23
26
25
Ukraine
30
30
12
30
Serbia
28
28
27
29
• To send feedback, e-mail karl.tomusk@estatesgazette.com or tweet @ktomusk or @estatesgazette
