According to BNP Paribas Real Estate, the European office market is moving” slowly but surely towards better days."
Despite the economic recovery in the euro area in the 1st half of 2010, the European market for commercial property remains uncertain. According to BNP Paribas Real Estate, "GDP growth in the second half of 2010 was lower than expected and the levels before the crisis will not be achieved before the end of 2012. The shift from a policy of strong support to the economy to austerity plans negatively impact the housing markets and thus represents the main factor of uncertainty for the health of the market in 2011. “However, the index of European real estate investment rose by 3% in Q3 2010 compared to the previous quarter. Most property investors focus exclusively on the 'premium' products, where prices are driven up and whose performance has dropped, especially in the United Kingdom. "The European index rate of return" premium "continues to trend down with a fall of 6% in Q3 2010 compared to second quarter 2010, reaching new levels of Q4 2007, says BNP Paribas Real Estate. The rate of return "premium" could soon reach a low differentiated by the property market and product type ".
The transactions, according to the quarterly European index, rose 9%, which included companies moving into new premises or quality offered to lease more attractive than in 2007. Rents in this "premium” sector are showing an increase of 6% in places like Central London. But all the capitals do not trend the same way: "However, the correction in Madrid is still ongoing, but at a lower speed, says BNP Paribas Real Estate. The real estate markets in Europe are recovering slowly from the crisis but the economic forecast for 2011 growing companies and investors to remain cautious. The road to full recovery is long and the impact of austerity plans on the economy remains the largest source of uncertainty”