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Positive Indicators for 2013 to Facilitate Economic Recovery in 2014

Growing business confidence and an increase in turnover in 2013 will boost European office market.

According to CBRE’s latest report, the year 2012 was difficult for the commercial real estate market in Europe due to the Eurozone’s problems and low activity in industrial production. Fortunately, the prognoses for 2013 are positive as the threat of euro disintegration is receding. Morever, encouraging news are coming from China and the USA.

Improving sentiment and better fiscal stability within the Eurozone is having a quiet but positive knock-on effect in Poland, a country that in itself is one of the brighter spots on Europe’s economic map. It may not be overly visible in 2013 but we anticipate economic confidence to steadily build as we draw closer to 2014 and beyond. The current healthy levels of occupier activity in the industrial and office sectors are likely to remain and consequently investor interest in Poland will continue. – explains Colin Waddell, managing director at CBRE Poland.

According to Cushman&Wakefield’s experts, investor activity will increase this year, while market discrepancies will remain strong.

David Hutchings, head of EMEA research at Cushman & Wakefield said: Investment risk is still high in many European countries, but in 2013 investors may be more optimistic thanks to greater financial stability and a slight economic growth. Real estate prices are currently very attractive for potential purchasers as investments in real estate are fairly safe. Therefore, this year the turnover may rise by 5-6% amounting to €141 mld as a result of greater activity of banks and less strict credit terms. Economic stability may also boost tenant demand, whilst steady growth in certain economic sectors and regions will translate into increasing differences between commercial real estate markets. Recalculating risks will lead to the reduction of prices in some regions. Capitalisation rates for the best real estate will be compressed, while in the case of second-rate assets they may soar. New attractive regions are appearing on the diversified investment map of Europe, and the position of non-competitive markets affected by the crisis is becoming weaker.

Michael Rhydderch, head of the cross-border capital markets at Cushman & Wakefield adds: The demand for investment assets may increase. The core markets will still dominate investment markets. Germany and Scandinavian countries will continue to be the most attractive for investors and to strengthen their position on the investment market. London may attract investors as well due to low risk, whereas Paris remains a long-term goal for many players on the market. Regional cities will be rather secondary.


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