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Real Estate Asset Investment Indicator - Market Outlook - EY - United Kingdom

Real Estate Asset Investment Indicator

Market outlook

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The Eurozone crisis and weak economic data is impacting real estate investments. Respondents to our survey offer an insight into likely transaction trends for 2012 and beyond.

Transaction outlook differs by country

Expectations of a recovery in real estate asset transaction volumes 

Across Europe, 40% percent of all respondents expect improvement in activity levels in 2012, while a similar number disagree.

There is significant variance in expectations between countries. Approximately 55% of investors in Germany, France and Luxembourg expect a recovery in volumes, whereas almost 60% in Belgium and Switzerland take the opposite view.

The difference in views is a reflection of the differences between local markets. Therefore, investors need to treat real estate assets on a country-by-country basis, rather than regionally.

Market attractiveness high across Europe

While the outlook for transactions involving real estate assets varies, the level of confidence in future investments across Europe is apparent.

Assessment of local market attractiveness for real estate assets 

For example, 99% of respondents to our survey in Germany describe their country as attractive for investment.

Across the 12 countries in our survey pool, the majority are rated highly for attractiveness. In addition to Germany, Sweden and Austria all score in the 90s%.

It is interesting to note that emerging markets such as Russia and Poland are also rated highly for market attractiveness. Our survey provides more detail on which classes and regions are the cause of these trends.

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