Commercial real estate in Europe recently has become more attractive to investors, the real estate service DTZ determined. "The ECB recently announced the program for quantitative easing in the amount of € 1.1 trillion increases the attractiveness of European real estate versus bonds," said Yvo Postleb, Country Head Germany at DTZ. "The decline of bond yields and forward rates, which was triggered by the Quantitative Easing program of the ECB, lets us expect that the real estate market in the first half of 2015 will continue to show good value development." From the second half of 2015, however a decline in real estate returns is expected.
Logistics properties are currently the most attractive sector in Europe. "Higher income return compared with office and retail space make them particularly attractive for investors, leading to an even wider spread to government bond yields," says Postleb. "The five most undervalued markets in Europe are all logistics markets."
Growth prospects decide on appeal
The periphery of the euro zone currently belong to the most undervalued markets in Europe. This applies to logistics properties as well as for office properties. "Peripheral countries offer attractive growth prospects than many mature Western European and Nordic markets such as the UK, France and Sweden," says Postleb.
Source: http://www.fondsprofessionell.at/news/markt-strategie/nid/guter-zeitpunkt-zum-einstieg-in-gewerbeimmobilien/gid/1019672/ref/4/
DTZ: Good time to purchase commercial real estate
The loose monetary policy of the European Central Bank makes especially logistic and office properties in the euro periphery interesting, says DTZ real estate service.
