Lauren Parr

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

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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.
At the ULI Europe Paris 2011 conference in February, former Irish Prime Minister John Bruton said that, in addressing their nations’ economic troubles, Europeans see problems that cannot be fixed, whereas Americans see challenges for which solutions have not yet been found. Learn what he says about Europe’s banking crisis and how to get the monkey off the back of the European economy.
Panelists at a session titled “Around the World in 60 Minutes: Places People Are Investing” at the ULI Europe Paris 2011 annual conference in February said there is money to be made in both emerging markets and developed markets, but that the opportunities differ widely. Find out the specifics as well as which countries saw heavy investment in 2009 and 2010 and which saw the biggest declines.
In a session titled “Making Sense of the Global Economy in 2011” that took place at ULI Europe’s Paris 2011 annual conference in February, it was noted that the United States is recovering faster than Europe because U.S. policy has been much more aggressive in supporting the economy after the crash. Read what attendees had to say about the other challenge facing Europe—the sovereign debt crisis.
Over the medium to long term, commercial property in Europe is believed to be a sound investment, owing to attractive valuations and the relative transparency of real estate markets there. And in today’s low-interest-rate environment, it can provide healthy, predictable cash returns and an opportunity for capital appreciation. Learn what else experts are saying about this important asset class.
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