Real Estate for a changing world

Europe - CRE 180 report - April 2021


The economic rebound in Europe has been postponed again

In the Eurozone, governments were forced to maintain or tighten health restrictions as cases rose again. The timing of the recovery will depend essentially on the effectiveness of restrictive measures and the acceleration of vaccination campaigns. In Europe, the main recovery should be in H2 2021.

The upturn in inflation could be short-lived

The recent acceleration in prices is being driven by temporary factors (higher crude oil prices, changes in VAT, etc.). These temporary effects should dissipate at the beginning of next year.

Better times ahead for investment

Investment decreased 34% over the last 12 months compared to the pre Covid-19 period. However it should see improvement in the next quarters as the pandemic comes under control.

Toward an acceleration of take-up in 2021

Office take-up shrank 22% relative to Q1 2020, which was not subject to Covid-19 restrictions. However, first signs of improvement compared to the end of 2020 were seen in some European markets.

No oversupply expected in Europe

Vacancy rose 130 bps on average in Europe’s 28 main markets. However, it remains low in the most central submarkets and is mainly the consequence of the release of second-hand buildings.


Europe_CRE_180-BNPPRE_Global_ Research_260412021
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