Emerging Trends in Real Estate® Europe is a joint survey by PwC and the Urban Land Institute. Now in its fourteenth edition it provides an outlook on real estate throughout Europe for 2017 and beyond.
493 Survey respondents from across 22 European countries
288 In-depth interviews with industry leaders from across the European real estate sector
30 European cities and 22 real estate sectors analyzed for their investment & development in 2017
61% are tailoring their real estate strategy in response to demographic and social changes
New market realities
The European real estate industry is experiencing a seismic shift in its centre of gravity – from real estate as a financial asset, to real estate as a product and more significantly, to real estate as a service.
While there is a general post-Brexit slump in sentiment towards the UK, investors continue to see value in real estate across many parts of Europe. However, return expectations are being scaled down, and the importance of active asset management as a means to access income is being talked up.
Emerging Trends in Real Estate®: Europe 2017 reveals an industry that is starting to look beyond traditional boundaries, perhaps realising it does not have all the answers at this point in time. But if real estate is to thrive in a fast-changing and uncertain world, its industry leaders will need to make bold decisions.
The business outlook for Europe in 2017
Emerging Trends Europe respondents are divided between those who believe prime real estate is fairly priced, and others who fear it is overvalued. But regardless, equity continues to flow into Europe from all corners of the globe and from all types of investors. “Lower” could be the mantra for this year’s report however: lower economic growth; lower rental growth; and lower return targets. More than two thirds believe that outperformance will be more difficult to achieve with many expecting more volatile cycles. However, most are hopeful of achieving the same as they cited last year; 45 percent are still aiming for between 5 and 10 percent, and another 24 percent are also still looking for between 10 and 15 percent.
“The clear consensus among global investors is to find safe, reliable return and not place capital at risk. – Pan-European fund manager