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Emerging Trends Europe participants expect that 2009 will be a difficult year for their industry. The global financial crisis has buffeted Europe’s economies, darkening the prospects for real estate. Transactional markets will recover slowly, inhibited by caution and a lack of debt on the part of equity investors. A significant amount of distressed property is expected to come onto the market.
There is substantial equity pencilled in for European real estate in 2009. Our survey indicates that the main sources will be private property vehicles and conservative institutions like sovereign wealth funds, insurance companies, and pension funds. However, they are waiting for property prices to stabilise before loosening their purse strings.