Categorized | Commercial

Commercial Property Market in Europe Shows Signs of Recovery

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Although there is increasing concern that the debt crisis in Europe may take a turn for the worse, its commercial real estate market continues to show signs of recovery. Overall sales of commercial properties increased in Europe during the third quarter, with international buyers investing more than ever before.

The commercial property market in Europe has increased more than twelve percent on the year. While prime markets have, as should be expected, strong results, the largest growth has actually come such countries as Switzerland, the Czech Republic, and Poland. Russia has also performed extremely well.

Central Europe has become increasingly attractive to investors, particular those from international waters. During the third quarter, international investors made up forty percent of the total buyers. Office spaces made up the majority of commercial real estate sales, coming in at forty-five percent. Retail properties made up thirty-one percent of sales, making it the second most popular commercial real estate option for investors.

It is believed that the numbers will eventually slow down during the fourth quarter, as lenders have become somewhat more stringent in the past month. However, at the end of the fiscal year, the numbers should still represent an increase from the previous year.

Analysts are uncertain as to the future of the European commercial property market due to the changes in lending standards and looming debt issues. However, it is apparent that some markets, particularly those in Central Europe, will continue to post strong results and grow at an unprecedented pace.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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