Optimism has returned to Europe’s property industry, according to Emerging Trends in Real Estate® Europe 2013, a forecast report published jointly by the Urban Land Institute and PricewaterhouseCoopers (PwC). The report shows that sentiment among industry leaders about the prospects for their businesses is more positive than at any time since 2008, despite the uncertain macroeconomic outlook. Equity for investment in prime commercial real estate is expected to increase, but bank debt is predicted to contract further.
German cities dominate the investment prospects for Europe’s commercial real estate sector with investors continue to favor safe haven locations. The report’s ranking of 27 cities across Europe, based on respondents’ expectations for market performance in 2013, sees Munich top the league table, followed closely by Berlin in second place and Hamburg in fifth position. Investors took comfort from each of the cities’ strong local micro-economic climate and resilient property market conditions.