Real estate leaders brace for imminent recession
Real estate industry leaders in Europe see falling values as inevitable as the threat of recession grows, according to a new survey.
Some 71% of the 900 industry figures surveyed by the Urban Land Institute and PwC UK said Europe will enter recession before the end of the year, with asset values falling and expectations around the availability of equity and debt at their lowest level since the global financial crisis.
The Emerging Trends in Real Estate report found 91% of respondents concerned about inflation, closely followed by interest rate movements (89%) and European economic growth (88%). Over the medium term, interest rates and growth are the biggest worries.
Real estate industry leaders in Europe see falling values as inevitable as the threat of recession grows, according to a new survey.
Some 71% of the 900 industry figures surveyed by the Urban Land Institute and PwC UK said Europe will enter recession before the end of the year, with asset values falling and expectations around the availability of equity and debt at their lowest level since the global financial crisis.
The Emerging Trends in Real Estate report found 91% of respondents concerned about inflation, closely followed by interest rate movements (89%) and European economic growth (88%). Over the medium term, interest rates and growth are the biggest worries.
Lisette van Doorn, chief executive of ULI Europe, said: “Since we conducted the survey and interviews over the summer, which already showed highlighted deep concerns, the industry has become even more worried. But there is still a lot of capital available to invest and mostly not in a hurry, waiting for the right opportunities to arise. For the industry to weather the storm, stock selection is key, in addition to a strong ESG focus, operational skillset and customer focus.”
Asked to rank cities for the investment outlook, London took the top spot for the second year, followed by Paris and Berlin, swapping places from last year.
PwC’s Gareth Lewis said: “Though the same cities remain in the top three, the overall investment and development prospects for all 30 cities have declined. Cities that have risen in the rankings most significantly this year are Madrid, Lisbon and Copenhagen.”
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