If Brexit won’t happen, investments in the European commercial real estate sector will grow

If Brexit won’t happen, investments in the European commercial real estate sector will grow

According to Cushman&Wakefield, the results of the referendum in the UK will affect the entire European real estate market. If the Britain will remain in the EU, investments in the sector of commercial properties will increase by 5-10%.

While that Europe froze after a great activity throughout 2015. By the end of March 2016, annual investment in European commercial real estate fell by 6% compared to the previous year. If we consider only Q1, the drop in the volume of investments amounted to 14%.

On the UK market this "investment pause" is even more palpable. By results of Q1 sales fell by 30% - the volume of investments amounted to slightly less than €14 billion. However, the situation is not so critical, because this amount is commensurate with the average data for the last 10 years.

In other previous leading countries, France and Germany – situation is the same. Worth mentioning, that while there is a decline on the key markets of Europe, other European markets are developing rather actively. In Q1 investment growth was 15%. In Spain investments rose by 20%, in Italy – by 40%, in the Netherlands – by 43%. Scandinavian countries feel themselves also well (Sweden – 22%, Finland – 28,5%).

As far as whole  Europe is concerned, the greatest demand is for office premises, the volume of investments in this sector amounted to €20 billion. But the retail property market decreased by 46%, investment fell to €9 billion.

According to the materials of arendator.ru and cre.ru

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