Investment volumes will increase 20% next year to £194bn from an estimated £162bn this year, according to predictions released by Cushman & Wakefield’s EMEA capital markets team.
The team’s assessment of the market for 2015 states retail and logistics will win a bigger share of the market but quality property in all sectors will be in demand and a notable increase in the appetite for development is to be expected. Demand for efficient space will start to push rents up and, led by Western markets, prime rents are expected to grow 2-3% in 2015 with good growth for dominant high streets and shopping centres.
With finance markets growing more competitive, markets will be even more liquid in 2015. Furthermore, liquidity will be boosted by quantitative easing and the aftermath of the ECB bank stress tests.
The report suggests that with the scale of liquidity in the market 2015 could be the best ever year in terms of the volume of transactions.
Jan Willem Bastijn, head of EMEA capital markets for Cushman & Wakefield, said: “Our estimates for the market continue to be pushed higher as both the supply and the demand outlook improve.
“With volatile stock markets and rising liquidity boosted by quantitative easing, the push to demand is already evident and the boost to supply will come from deleveraging banks and businesses as well as profit taking and, in our opinion, a more notable pick up in development.”
