Categorized | International

European Commercial Property Market Struggles to Keep Pace

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The commercial real estate market throughout Europe had a very difficult time staying on pace with the rest of the world during the last quarter of 2011. In fact, only Germany was able to stay on pace with the majority of nations around the world.

The threat of a potential European debt crisis has, without a doubt, impacted the performance of the commercial real estate market across the continent. Many investors believe that there will be a long period of minimal growth, if any, in Europe, and have thus decided to take their investment dollars elsewhere.

While the European commercial real estate market is struggling, the markets in such nations as Brazil, Canada, China and Russia are all showing signs of strong performance. Demand in each of those countries is high, and will likely go higher as more international investors look to enter the market.

It is in those four countries that growth in capital values will be the strongest, making them the clear top choices among investors.

The United States is expected to emerge in 2012 from the troubled state that it has been in over the last few years.

Interestingly enough, the nations that are having the greatest success right now in the commercial real estate market are those that avoided issuing sub-prime credit during the real estate boom. By avoiding the issuance of sub-prime credit, those nations made them better prepared for long-term results, as can be seen in their most recent performance.

When looking at the performance of the commercial real estate market in each of the European countries, only the premier areas of the largest cities continue to be in demand. As such, the prices of all other areas continue to drop.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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