Categorized | International

Sales in European Commercial Property Become Stagnant

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The European commercial real estate market continues to have its troubles. Recent reports show that both waning interest in real estate, and also decreased home values have caused investment in commercial properties to stall in various areas of Europe.

When looking at the big picture of the European commercial real estate market, it is evident that overall activity within the market has essentially stayed flat during the second quarter. Property yields have not changed in the commercial sector of Europe. While the stagnation of the overall European commercial real estate market is not exactly great news, a closer look at the big picture shows that the numbers simply reflect a balance between areas that are flourishing, and others that are struggling.

Such countries as Germany, Norway, and Sweden are receiving considerable attention from commercial real estate investors. Particular cities throughout Europe are also receiving significant attention. However, it does appear that investors are fleeing in masses from the UK, France, Greece, Spain, Portugal and Ireland. Each of those countries mentioned have seen extreme drops in commercial property sales activity.

The news of stagnation in the second quarter is certainly not good, though it should be pointed out that the numbers for the first half of the year, which includes both the first and second quarters, do indicate a growth overall across the European market.

The stalling that has taken place in the second quarter, though, begs the question as to how will the European commercial market fair for the rest of the year. Will it continue along the same stagnation that was seen in the second quarter, or will it correct itself and once again see growth?



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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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