Global Research Gateway

The CBRE 2018 Europe Real Estate Market Outlook provides insight on the key trends our experts think will affect the European property industry over the next 12 months. 

Key takeaways:

• Positive economic environment for most of Europe through 2018 to 2019
• The prospect of higher long-term interest rates will start to pose a challenge to property pricing
• Continued strong growth in assets under management will put pressure on investors to deploy capital
• Another strong year for office-based employment growth in 2018
• Growth in appetite for flexible offices will permeate across European markets
• Retailers increasingly focused on getting their city strategy correct. This will support rental growth at the prime end of the market
• Very strong demand growth has cut the availability of large-scale modern space, producing capacity constraints in some of the main European logistic hubs.  Coupled with strong e-commerce relate growth this will support further rental increase
• The evolution of the residential sector will be supported by the sheer quantity of capital available for real estate investment in 2018, increasingly through development in order to build scale
• Stock shortages and premium pricing in gateway cities for the hotel sector will encourage investors to look further afield at secondary and niche opportunities
• A key feature in 2018 will be operator consolidation across Europe in the alternatives sector.  This will present real estate investors with new partnership opportunities as well as enhancing covenant strength.