Emerging Trends in European Real Estate 2012
❉An economic crisis has left the European real estate industry in limbo, with preferred markets chosen more on their potential as safe havens than high-growth hubs, and with highly specialized non-core investments gaining attention as alternatives to traditional property types, according to Emerging Trends in Real Estate Europe 2012, the annual industry forecast published by PwC and the Urban Land Institute (ULI).
The report says that the prospects for any turnaround this year hinge on how recent regulatory measures will affect banks’ willingness to make commercial loans, and whether another financial industry collapse caused by sovereign debt issues ultimately triggers a widespread release of assets by banks to investors.
“Debt will be the main story of 2012. There is general pessimism regarding the availability of debt this year, and
The good news is that the view of respondents regarding the availability of equity is much more positive. Most promising is the response rom institutional investors: 65% believe that equity will be moderately more available, with a further 10% believing that equity would be substantially more available”.
- John Forbes, Real Estate Partner PwC
Emerging Trends says that 2012 is about finding new opportunities in both longer-term and short-term non-core investments. This year, the report predicts, investors will continue to eschew a strategic focus on whole countries, cities or sectors in favor of asset-led, deal-by-deal approaches. It says; “Nowhere is a ‘Must Buy’, today”