According to the annual report, Emerging Trends in Real Estate -- Europe 2015, real estate capital markets in Europe are on the upswing with room for continued growth and profitability. Availability of capital is one of the key factors driving the market, coupled with higher prices and lower mortgage rates. The report highlights that the majority of the industry expects greater liquidity, and referred to real estate as “the least overpriced asset class when compared with stocks and bonds.”In addition, capital is being infused into the European markets from Asia and North America, and “real estate IPOs in Europe have reached their highest level since 2007.”
“Easier access to debt is playing a significant role in the continued growth, with the Northern European markets having the most liquidity,” stated Keith Knutsson of Integrale Advisors.
Some wonder though if the real estate markets in Europe may have "rebounded too far, too fast” or if deflation should be a concern. Despite capital being readily available, some believe “the problem is more that there is too much equity and debt and too few investment opportunities.” However, for now, it would appear that the majority see continued profitability in the European real estate market.
To gain a deeper insight into the market trends, Keith Knutsson recommends the PWC annual report in real estate from Integrale Advisors’ partner PWC (Price Waterhouse Cooper). These studies are developed by conducting interviews with many of the industry leaders to get their deep market knowledge. These studies help us to understand common themes across the European continent.
With over 20 years of experience working in both the United States and European real estate markets, Keith Knutsson is currently the Managing Director of Integrale Advisors. Integrale Advisors is a real estate investment and advisory firm. Integrale Advisors principals are seasoned real estate professionals with in-depth real estate experience making investments and advising clients. Integrale adheres to the principles of extensive research, thorough underwriting, impeccable execution and alignment of the investors’ and management’s interests.