Investor demand in the UK, Germany and Sweden means that those property markets are likely to recover more quickly than others in Europe, according to Deutsche Bank’s latest real estate outlook.
This is in contrast to other European markets, where “Europe remains in recession and vacancy rates are expected to continue rising”, said the research report.
Property capital values will continue to grow in London and most of Germany, said Deutsche Bank. London continues to lead the way for the UK across most sectors, including office rents, where growth is expected to come initially in central London. The big German cities are also expected to provide substantial capital growth.
The report adds: “By the middle of the decade, the recovery is forecast to gain momentum, and include prime eurozone periphery locations, as rising demand and little development supports a bounce back in rents, which are now well below their pre-recession peak.”
david.harris@estatesgazette.com
