Lauren Parr

Lauren Parr is news editor at Real Estate Capital, a London-based publication that covers property finance throughout Europe.

Historically high levels of national debt, combined with falling gross domestic product levels, have left some European economies exposed to sovereign debt concerns. For many countries, decreasing national debt through austerity measures—including job cuts—is the only option. Read more to learn which markets are expected to be most affected by the widespread reduction in public sector spending.
Due to recent turmoil in the debt and equity markets as a result of the sovereign debt crisis in Europe, there is a trend toward stable assets in safe-haven locations, which tend to hold liquidity, and a move away from poorer-quality real estate. Read more to learn what Joe Montgomery, chief executive of ULI Europe, has to say about the likely trajectory of deals over the remainder of the year.
When it comes to the best and worst markets for office and retail development in Europe, large, stable markets like Germany and Poland are places where new assets can be developed; in countries like Italy, Spain, and Portugal, however, where there are concerns about sovereign debt, it is much more difficult. Read more to learn what types of development will succeed and what investors now expect.
Low birth rates, recently imposed caps on immigration in the United Kingdom, the decline of men as part of the workforce, and the current lack of development finance available from banks may conspire to attenuate the European Union’s real estate market over the next 50 years, say participants at a recent conference. Read how these realities are poised to affect investors in all parts of the world.
Hit hard by the global recession, Spain and Ireland have seen their property values fall significantly—and they may fall further still. But there are selective investment opportunities, with one survey showing that the level of distressed property for sale in the first quarter of 2011 increased faster in Spain and Ireland than in other markets. Read which country investors are betting on—and why.
Though the market for commercial green retrofit projects in Europe is growing, a viable financing model has yet to emerge. Also, the recession has instigated a lower tolerance for risk and forced some landlords to reevaluate their plans for capital expenditures. Read about the factors investors weigh when deciding whether to take retrofits beyond what would be needed to comply with government standards.
With the climate-change agenda a high priority, market-led solutions to facilitate green retrofits are emerging in Europe—though a centralized approach to promote improvement works is still to come. By 2050, EU targets to cut greenhouse gas emissions by 80 percent compared to 1990 levels. The market for green retrofits is therefore seen as a major growth area across Europe.
New financial models have emerged in response to a debt funding shortfall in Europe caused by a retraction of traditional bank lending since the credit crisis. European banks are once again starting to explore the concept of churning their balance sheets through the issue of commercial mortgage–backed securities. Read about two new entrants that are trying to exploit the gap.
The EU is putting into effect substantial expenditure programs to drive improvements in infrastructure across Europe, as part of the Trans-European Transport Network—a planned set of road, rail, air, and water transport networks designed to serve the entire continent. Learn why the newest EU member states—Poland in particular—will get the lion’s share of EU funding for infrastructure.
In the immediate aftermath of Japan’s biggest earthquake, there is likely to be a repatriation of capital from overseas by Japanese investors in an effort to restore the country’s infrastructure. This is expected to draw away some investment from European property. Discover what real estate industry insiders are saying will counterbalance this upcoming decrease in European property investment.
Members Sign In
Don’t have an account yet? Sign up for a ULI guest account.