Economy: a marathon, not a sprint
While the fundamental story remains intact, the recovery will be neither fast or straightforward. We have revised down our near-term profile for growth and revised up our forecasts for inflation, reflecting what we perceive to be predominantly a negative supply shock.
Investment slowly but steadily increasing
Q2 2021 saw a surge in investment with levels comparable to 2018 or 2019. In comparison, the increase in Q3 2021 was moderate, almost reaching the average of previous years.
Office: strong rebound in activity in Q3
Letting activity in Europe sharply accelerated in Q3. Volumes amounted to 6.56 million sqm in the 26 main markets, up 15% on last year. However, pre-crisis volumes or even the long-term average will not be reached in 2021.
The logistics market hits new records
The occupier market is thriving with demand structurally strong, boosted by ecommerce. Investment is setting a new record and prime yields are still compressing, reflecting aggressive pricing on prime products.
Retail industry on the way to recovery
While retail trade is resuming across Europe, retail investment slightly improved over the last two quarters, boosted by a rising interest for retail warehousing and supermarkets.