Regulation, Austerity Europe, the sovereign debt crisis, and a lending market that seems weaker than ever are the challenges facing Europe’s real estate industry in 2011. The report provides an outlook on European real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues.
Key highlights from the report:
- What has changed is that while last year’s interviewees were angst ridden that the large amount of debt maturing across Europe over the next five years would prevent banks from undertaking new lending, the new questions for 2011 are how much impact Basel III will have on the appetite of banks to lend to property and, when they do, how expensive it will be.
- With capital so risk averse, winning cities like London and Paris will continue to absorb investment as the only places where tenant demand will be robust. But within those winning cities and across countries, capital will home in on the best buildings. The result is that values for secondary properties will remain at distressed levels and decline further in the months ahead.