Solid economic performance and robust occupier market fundamentals providing a supportive landscape for real estate investments in Europe 33% of respondents expect to spend more on real estate in 2018 compared to 2017 Investors perceive asset pricing as the key obstacle to deploying capital in 2018, followed by a lack of product A faster-than-expected rise in interest rates is the main threat to property markets. In the EMEA survey results there is clearly less emphasis on political events compared to last year’s survey results Investors expressed a larger appetite for risk, although they remain largely focused on core and core-plus strategies Industrial is the preferred sector for 33% of the respondents, surpassing Office for the first time in the history of the Investor Intentions Survey The rise in Industrial was at the expense of Retail Residential recorded the steepest increase in popularity, and was indicated as the preferred asset class by 21% of the respondents Driven by limited availability of product and competitive pricing, investors are seeking alternative ways of getting exposure to real estate, as evidenced by recent platform transactions and by venturing into niche markets and new asset classes Income-related factors such as stability of income stream and yield relative to other asset classes are investors’ main motivations for investing in real estate
The 2018 CBRE EMEA Occupier Survey highlights a strong and growing focus by corporates on deploying technology, wellness and flexible space as core elements in an agenda focussed on enhancing the user experience. • Companies intend to invest more heavily in new real estate technologies over the short to medium term. Their reasons for doing so are increasingly shifting towards enhancing the user experience and also raising workforce productivity. This represents a clear move away from aiming real estate technology at purely operational goals such as energy management. • This shift of focus is reflected in the technologies of choice: wayfinding apps, connected sensors, wearables and personal environment control systems. Room or seat reservation systems and sensors are also being increasingly adopted to support improvements in space efficiency.
The CBRE 2018 Europe Real Estate Market Outlook provides insight on the key trends our experts think will affect the European property industry over the next 12 months. Key takeaways: Positive economic environment for most of Europe through 2018 to 2019 The prospect of higher long-term interest rates will start to pose a challenge to property pricing Continued strong growth in assets under management will put pressure on investors to deploy capital Another strong year for office-based employment growth in 2018 Growth in appetite for flexible offices will permeate across European markets Retailers increasingly focused on getting their city strategy correct. This will support rental growth at the prime end of the market Very strong demand growth has cut the availability of large-scale modern space, producing capacity constraints in some of the main European logistic hubs. Coupled with strong e-commerce relate growth this will support further rental increase The evolution of the residential sector will be supported by the sheer quantity of capital available for real estate investment in 2018, increasingly through development in order to build scale Stock shortages and premium pricing in gateway cities for the hotel sector will encourage investors to look further afield at secondary and niche opportunities A key feature in 2018 will be operator consolidation across Europe in the alternatives sector. This will present real estate investors with new partnership opportunities as well as enhancing covenant strength.
In 2017, the European hotel investment market achieved a record volume of €21.6 billion. This surpasses the previous peak set in 2015 of €21.2 billion. The Nordic hotel investment market doubled in size in 2017, with transaction volumes increasing by +101% y/y. Spain continued to see strong investment appetite, achieving a record-high volume of €3.7 billion. The United Kingdom experienced the highest actual investment volume of all European countries at €6.2 billion in 2017.
Now in its fifth year, the EMEA Fit Out Cost Guide is widely regarded as an industry benchmark. It provides market-leading insights and data to clients, providing invaluable support when it comes to location and fit out decisions. The EMEA edition is part of a global suite of guides, designed to support our clients wherever they do business. This year's edition covers 64 locations. Key features including different specifications, technology and furniture costs, and moves and relocations, are continued, while details around workplace have been updated in line with current trends. The traditional and agile layouts featured in this year’s Guide have also been updated, to reflect client demands, including innovative space and furniture solutions.