News & Updates Market

OCTOBER 30, 2020
Slovakia Marketbeat: Office 2020.
Despite nationwide testing and lockdowns, test positivity rate and the number of hospitalized patients surged at the turn of the year given heightened mobility of population during the holidays. As COVID-19 continues to trigger unprecedented Government response, the business environment must navigate through this unique playing field. According to the estimate of the National Bank of Slovakia, Slovakia’s GDP fell 5.7% last year, while according to the estimate of the European Central Bank, the GDP of euro area as a whole fell 7.3%. The third quarter has seen a real GDP drop of 2.4% and a similar sentiment is expected at the year end. After an excellent third quarter, production, exports and turnovers fell slightly month-on-month. The adopted anti-pandemic measures have reflected in employment as well as in wages, the growth of which slowed down. Liquidity shortfalls in the private sector were sought to be replaced by external sources of finance which were more accessible due to the monetary policy measures and Government guarantees.
The Recovery Plan for Europe: a green wave for the real estate sector
Europe’s economic response to the COVID-19 crisis took shape in July: the European Council approved the Recovery Plan for Europe, the so-called NGEU, via which the European Union will grant up to 750 billion euros to its member states to stimulate their economic recovery after the shock of the pandemic. This is an unprecedented agreement and it could have a considerable impact on Europe’s real estate sector since one of the EU’s main goals, to which this Recovery Plan aims to contribute significantly, is to reduce greenhouse gas emissions by 55% by 2030 compared with 1990 levels. It is clear that renovating Europe’s buildings, which are responsible for 40% of the continent’s energy consumption, will be key to achieving this climate target.
5 big questions real estate is asking in 2021
At the start of 2021, the real estate industry has a lot to mull over. Companies are grappling with work-from-home policies and the role of the modern office. Investors are contending with not only a global economic downturn, but the sweeping cultural shifts influencing how we shop, work and spend our free time. And then there are the transformational developments that were taking place well before the health crisis. Remaining front-and-center are political upheaval, tech-driven disruption, and the push for more ambitious sustainability practices. Amid the raft of questions about what’s in store for 2021, here are five prominent ones that JLL experts believe will play a big role in how the industry moves forward.
Macroeconomics Forecast 2021-2022

MARKETMacroeconomics Forecast 2021-2022

December 11, 2020 SOURCE: Edmond de Rothschild bank EUROPE
"The situation is very different from the major financial crisis of 2008. Analysis of the specific models of flu pandemics show that their negative impact on the economy owes 60% to administrative decisions on lockdowns and border restrictions. Once these are reduced or lifted, economic activity resumes. Consumption also depends on the mortality rate. The higher the latter, the more households are willing to stop consuming. Lastly, improved knowledge on virus transmission reduces the severity of the measures taken and, hence, the economic impact in the event of a new wave."
UK is top hotspot for post-Brexit European and overseas residential investment
Investment in the UK Real Estate market is open for business post-Brexit, according to the European Real Estate global survey by international law firm DLA Piper. The survey of 500 investors, developers, and asset managers with more than USD3 billion AUM from across Europe, China and the US, ranks the UK highest for future residential real estate investment.
Outlook 2021 – Contingent on the COVID cycle

MARKETOutlook 2021 – Contingent on the COVID cycle

December 10, 2020 SOURCE: Deutsche Bank GERMANY
The COVID cycle and vaccination progress will drive the economy in 2021. We expect that infection rates will not come down decisively before Q2. By summer vaccination numbers should reach critical mass. A strong recovery starting in Q2 should yield an annual GDP increase of 4.5% after a 5.5% drop in 2020. All attention on the super election year 2021: Germany is facing federal elections and multiple state elections. Our baseline scenario is a conservative-green government, but coalition talks will significantly test the willingness to compromise on both sides. (Also in this issue: global trade and exports, private consumption, labour market, equipment and other investment, the German housing market, public finances, inflation, German industry's corona losses)
Spain | Real Estate Outlook December 2020
The sale of homes and the signing of permits suffered a notable correction during the months of confinement. This resulted in a drop in residential prices in 2Q20 and 3Q20, the first time since 2015. The correction could continue in 2021, although a recovery is possible towards the second half of the year.
Real estate investments in Europe - statistics & facts
According to respondents from a 2017 survey, the real estate market in Europe was, in their opinion, the most attractive region worldwide for investments in real estate. Before COVID-19 hit the continent, industry experts were still targeting a return level between five and ten percent for their property investments in 2020. In an investment climate affected by artificially low interest rates and tricky geopolitical events that can affect stock markets drastically, some think investing in European housing, office or warehouses is a good alternative. The main motivation of these property investors is that it provided a safe way for asset class diversification. But how does this type of investing look like?
Berlin to lead real estate investment destination in 2021: PwC/ULI
Berlin is predicted to be the top destination for real estate investor in 2021, a year which is also expected to favour investments in data centres, logistics and life-science properties. According to PwC and Urban Land Institute’s (ULI) Emerging Trends in Real Estate Europe report, investors believe Europe’s core cities, like the German capital, offer liquidity and stability. London was up two places to second as investors considered it as good long-term value and Paris remained in the top three.
COVID-19. Real Estate Investment Guide
The Covid-19 pandemic continues to have an unprecedented impact across the globe. This resource provides up-to-date insight on how the various real estate sectors are progressing after the markets have started to reopen. A basic assessment of the structural risks for key markets in Europe can be easily applied to real estate portfolios and even to a single building.
The Spanish property market forecasts recovery to pre-COVID-19 levels by the end of 2021
The real estate sector is back to business as usual with a positive outlook for 2020 and 2021. The real estate sector in Spain, which has been operating normally again for a little over a month after the COVID-19 pandemic, is experiencing a gradual reactivation and recovery at operations level, while the whole of the Spanish economy is getting back on its feet. "We anticipate an evolution of the economy adjusted to a 'U-shaped' model which won't be very steep, meaning that we can predict a recovery of pre-COVID levels by 80-90% at the end of 2021," explains Lola Alcover, secretary of the General Council of the Official Associations of Real Estate Agents of Spain.
Germany real estate market: No Corona discount
Some economists had expected the corona crisis to slow house prices. But recent figures show significant increases. The Corona crisis has not given property buyers a chance to buy cheaper prices. In the second quarter, prices for apartments and houses in Germany continued to rise. According to an initial estimate by the Federal Statistical Office, property buyers had to put on the table 5.6 percent more in recent months than in the same quarter of the previous year. Compared to the first quarter, apartments and houses were 1.4 percent more expensive.
Property Index. Overview of European Residential Markets
We are pleased to present you the ninth edition of the Property Index, Overview of European Residential Markets. During almost a decade, Property Index has become one of the most important and popular Europeanreal estate publications and has acted as a valuable source for professionals, institutions and general public.
Big investors sniff bargains in tottering Spanish property market
Unlike most people requiring mortgages and seeking a single property, large investors can quickly mobilise funds, delegate tasks to local associates and forego in-person visits - as with new-build properties, office and retail spaces, or “do-uppers” destined for total renovation. “Whereas funds have cash specifically for this - they wait for these moments.”
The COVID-19 crisis and the German real estate market
Due to the COVID-19 pandemic, uncertainties about the future development of German real estate prices have increased considerably. A global flight to safety should drive prices for residential properties up. In the short-run, the downturn in economic activity, particularly during the first half of 2020, and considerable uncertainty about the future as well as the psychological burden are likely to result in price declines.
What's happening in Europe's property market?
The European real estate market has seen several years of strong growth. In fact, since early 2016, house prices in the EU have risen by 4.6% year-on-year on average, outperforming wages and GDP growth. This upward trend has been widespread across countries and also large cities. This article examines the factors underpinning this trend and whether it poses any risks.
Portugal and the future of housing
The real estate sector is of the utmost importance to the Portuguese economy. Real estate and construction activities account for 7.3% of total employment and the construction sector was responsible for 8.1% of Portugal’s GDP in 2018. In addition, housing is the main asset of households: in 2017, real estate accounted for 48% of total family wealth. In light of its importance, below we analyse the recent developments in the sector and its future outlook.
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