26/03/2012

Europe | Investment

European Investor Confidence Survey Winter 2011/2012

European property investors taking a sober view - February 2012

The start of 2012 shows the caution that investors were indicating in our summer survey, crystallising into a downbeat assessment of market prospects for the coming year.

Europe’s sovereign debt crisis has not killed property investment (our own data shows activity remains strong) but investors are taking a sober view about the likelihood of better conditions, particularly for total returns and rental growth.

Most sectors have seen slippage in confidence and expectations of improvement. The prime office sector remains important but there are indications that investors are thinking more widely about asset types that may present good growth prospects over the next twelve months. This is perhaps not surprising given that while the demand for core offices is good, supply, as always, is finite.

  

Market confidence turns negative

- Fewer respondents expect conditions to continue to improve.

- Investors with Germany as their key markets are the most optimistic.

  

Investors less certain about rental growth prospects

- Investors anticipating rental declines in many sectors

- Fewer expecting prime office rental growth

- Residential stands out as the sector foreseeing growth.

 

Investors not expecting asset gains in most sectors

- Most sectors likely to see declines in total return

- Prime offices still the most favoured sector apart from Germany where residential takes first place

 

Cross border activity still anticipated to rise

- Germany and the UK remain popular.

- Spain may see an increase but investors expecting less activity in France and Italy

- Importance of non-western European countries greater in investors’ buying intentions.

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Pineau Christophe

Christophe Pineau
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