GERALD EVE EUROPEAN PROPERTY MARKET BRIEF:

WESTERN EUROPEAN ‘TOP TIER’ DOMINATES RENTAL GROWTH CHART

A top tier of western European cities are set to consolidate their current positions and see future rental growth across all sectors, while others are already stagnating or facing decreases, according to Gerald Eve’s inaugural European Property Market Brief.

The report featuring Gerald Eve’s ‘property escalator’ (pictured right) tracks current rental growth trends and future rental prospects across the major European markets.  It reveals a widely diverse market in which established UK, Irish and Spanish cities, in particular, are set to outperform counterparts in countries including Belgium, Germany and the Netherlands.

Barcelona is showing particularly strong prospects, with rents in the office, industrial and retail markets currently rising and forecast to continue. Dublin and London are also expected to see future rental growth across all three sectors,, while Manchester and Birmingham are forecast to continue to perform well in offices and logistics space.

Poland is revealed by the research to have the most challenging prospects on the whole, with rents in Poznan expected to decrease in all three sectors over the next six months, and Warsaw facing falling rents for offices and logistics.

Sally Bruer, partner at Gerald Eve, said: “This snapshot of European real estate shows a market that is in many locations confident of continuing growth over the next six months. Offices especially have good prospects across the continent, with a focus on the traditional business cities of Germany, France, the Benelux countries, the UK and Ireland as well as recovering Spanish markets.

“Logistics and retail space, meanwhile, are more stable in general, but still broadly positive with growth anticipated in resurgent economies that suffered most during the downturn. There remains, however, a subdued mood in Eastern Europe, with cities such as Warsaw, Poznan and Istanbul facing the prospect of falls in rents across sectors.”

Patricia LeMarechal, partner at Gerald Eve, added: “Cities don’t just compete with their near-neighbours, they are competing with locations across the continent, and this research clearly highlights the conurbations that have best grasped the extent of this challenge and shaped their approach accordingly.

“This creates investment possibilities, but central to investors’ ability to capitalise on these opportunities is access to genuine insight from local experts with a deep understanding of their markets. The value of Gerald Eve’s Europe-wide strategic alliances can be seen both in this research and the services and advice that clients have access to through these partnerships.”

The research – which analyses the current performance and future prospects of industrial, office and retail space in 23 cities across 11 European countries – is to be launched at MIPIM on Wednesday 16th March and draws on the collective expertise of Gerald Eve and its strategic alliance partners across the continent.

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Click here to download the European Property Market Brief