DTZ Fair Value Index report released by DTZ company, and UGL Company informs about investment's attractiveness on property markets in particular countries in Europe. 3rd quarter of 2012 was characterized with an index's increase to a 62 level in comparison with the previous quarter, it was 53.
The index's increase means an increase of investment's attractiveness on market. It was attributable by an decrease of investor's expectations on the subject of return from investments to commercial properties. European Central Bank declared backing for markets of Treasury bonds in the countries with en economy at risk, due to which return dates of Treasury bonds decreased. Bonuses for a risk also decreased in the case of the most assets including a property market.
Fergus Hicks, Head of European Forecasting, DTZ, explains: With the uncertain situation of European economy we observed big turnovers on a property market within past few months. However, announcement of European Central Bank that it will support markets of Treasury bonds of threatened economies with a Mario Draghi's comment that he'll do his best to save the Euro’s zone were positively accepted and bank rates of Treasury bonds decreased. Consequently, commercial properties are currently more attractive as an investment product and hence an increase of Fair Value Index.
The best situation is on the markets of Great Britain and Germany. The worst situation is in countries with a threatened economy in Spain and Italy. Ireland is an exception. The economic development caused that bank rates of Treasury bonds decreased. What's more we foresee that leases in Dublin will increase until 2017. Consequently Dublin's retail, stock and office properties will house in a HOT category according to DTZ Fair Value Index and they can constitute attractive investment's aims - says Matthew Hall, Global Head of Forecasting, DTZ.Download PDF