In this publication, we seek to answer ‘when’ to capitalise, ‘where’ you can find the most lucrative markets, and the ‘how’ to make these investments. Whether you're looking to diversify your portfolio, understand emerging trends, or simply find the next big opportunity, the Investment Atlas is your essential companion on the journey to commercial real estate success.
The commercial real estate (CRE) market is at a critical inflection point, signaling an impending recovery. This moment presents a unique opportunity for early market entry before a broader consensus drives prices upward. Investors can take advantage of lower asset valuations, with the potential for increased returns as the market stabilises.
The Fair Value Index indicates that 84% of markets are currently underpriced, offering investors attractive pricing, particularly in Germany, where significant repricing has created prime opportunities across all sectors. Retail and logistics markets stand out for their high potential for capital appreciation.
Decreasing base rates and enhanced lending conditions have cultivated a healthier debt landscape with attractive financing options. Lenders are actively providing capital for the office, retail, and logistics sectors, offering investors opportunities to secure favorable financing terms.
Investors are encouraged to refine their strategies in response to market shifts driven by behavioral, technological, and cultural changes. Emphasising ESG compliance, decarbonisation, and the increasing demand for affordable space will be crucial in shaping future investment decisions.
The UK, Germany, and Poland are identified as top markets for real estate opportunities, driven by yield compression, rental growth, and refinancing needs. Other markets, such as Spain and France, also present strong liquidity and recovery prospects.
Investors should prioritise assets that comply with ESG standards, implement brown-to-green strategies, and repurpose existing properties to adapt to evolving market demands, ensuring long-term value. By concentrating on underpriced markets, leveraging favorable debt conditions, and aligning strategies with overarching market trends, investors can position themselves for substantial returns in the future.
The TIME score offers a streamlined method for illustrating key changes in several crucial indicators, providing investors with valuable tools for assessing and predicting market dynamics.
The Fair Value Index, a forward-looking tool providing insights into the attractiveness of pricing in Europe's prime office, retail, and logistic property markets.
Over the past 24 months, the debt landscape has significantly improved, driven by falling base rates and a year-over-year decline in 5-year EURIBOR and SONIA swaps. Explore how these trends can benefit your investment strategies and overall financial performance.
As market drivers and opportunities shift, investors must recalibrate their strategies for European investments. The real estate sector is at a pivotal point, needing to adapt to ongoing behavioural, cultural, and technological changes. This dynamic environment presents multiple commercial real estate opportunities across various risk profiles, allowing investors to balance income security with operational gains. Explore how these changes can shape your investment approach and drive success.
European Forecast & Fair Value Index
