(PRWeb UK) June 2, 2010
Larger European economies lead property upturn
As the turbulence in Euro area markets has taken the edge of an improving global outlook in recent weeks, King Sturge’s latest research provides some reassurance that the worst may be over for Europe’s property markets.
The latest survey of rents and yields across the Continent shows that prime rents have stabilised in a majority of office centres, with the strongest seeing a return to growth after a significant correction. Most encouraging was the buoyancy in Central London’s offices, with strong increases in supply-starved City and West End.
Other office centres are a quarter or so behind London’s revival and trends in warehouse rents are also lagging. But most of the outlook is expected to improve as the year progresses and this represents an encouraging turnaround in occupier markets after only two quarters of economic recovery.
The investment upturn has been apparent since mid-2009. In early 2010, there was a further inward shirt of yields, though the movements were on average less dramatic than at the end of last year. For industrials, the Paris market saw the most significant reduction, with other centres maintaining their end-year levels. For offices, the larger economies in Western Europe continued to lead, with further compression in London, Paris and Frankfurt.
Andrew Burrell, Research Partner at King Sturge, commented that “looking ahead, provided the European economies can negotiate the current difficult conditions, the future is becoming brighter for property markets. The attractions of property as an asset remain clear and it’s reassuring to see investors’ interest now shifting towards good quality logistics product. We predict that good quality industrials will gain ground on offices and retail in terms of volume invested”.
Notes to Editor:
King Sturge is one of the largest international property consultancies in Europe with 42 owned offices in 14 European countries, forming part of a network of over 215 wholly owned, associated and affiliated offices in 47 countries worldwide. Over 3,800 staff throughout these offices cover all property sectors and specialisms including plant and machinery, and residential.
In Europe, King Sturge operates in the major UK commercial centres and principal mainland European cities. In Asia Pacific, the firm has associations in Australia, Indonesia, Malaysia and New Zealand. In the Americas, King Sturge has business partners in North, Central and South America through King Sturge CORFAC International and ChainLinks Retail Advisors.
Through a joint venture with a wealth manager, King Sturge now has a presence in the Middle East. The office will initially be based in Dubai, concentrating on states in the Gulf Corporation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
For further information please contact:
Régis Jacquemin, Corporate Communications Manager
+44 (0) 20 7087 5120
+44 (0) 7791 019 341
Andrew Burrell, Partner, Head of Research
+44 (0) 20 7087 5510
+44 (0) 7814 184 420
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