01. Juni 2010 
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Now is the right time to buy in Europe
DTZ’s flagship Money into Property report predicts that the worst of the property slump is over and forecasts that global invested stock will grow by 5 per cent in 2010. European invested stock is expected to rise by 4 per cent this year as capital values continue their recovery. This more positive outlook contrasts with a second consecutive year of decline in invested stock in Europe, by 8 per cent in 2009, and a first decline for Continental Europe.
DTZ forecasts that China will become the second largest real estate market globally by the end of 2011 – ranking only behind the US and overtaking Japan and the UK. The UK and France are the only European countries that are expected to feature in the top 5 global ranking by invested stock in 2011.
Hans Vrensen, Global Head of Research at DTZ, comments: “2009 was a tough year for real estate markets worldwide and saw the value of global invested stock decline by 6 per cent. However, the global real estate market is over the worst and we expect to see a return to growth in invested stock value this year, in line with the consensus macro-economic forecasts for a sustainable economic recovery worldwide.”
Transaction volumes across Europe declined by 44 per cent in 2009, despite a quarter-on- quarter increase since their lowest level in Q1 2009. European and global cross–border investments almost dried up in 2009 declining a further 59 per cent from the 2007 peak. In this negative global picture, Asia Pacific investment flows into Europe and especially the UK, were the only bright spot with a growth of 31 per cent in 2009.
Magali Marton, head of DTZ Continental Europe and Middle East Research said: “Continental European property markets were unable to avoid a decline in 2009. The last year was very difficult for both investor and occupier markets, but fortunately, the worst seems to be behind us. Globally, investors and lenders are expecting to do more business in 2010 than last year and Europe remains one of the favourite markets for cross-border investors.”
Based on its forecasts, global real estate adviser DTZ recommends that investors become pro-active buyers as a wide spread of European markets offer attractive ongoing investment opportunities for the next two years. DTZ Research identifies 151 out of 172 markets, or 90 per cent, across the globe as offering fair value in 20102. This is in contrast to last year, where only one international market, London City, was at fair value.
“In the Czech Republic total investment volume decreased by 58% year on year in 2009, however DTZ has witnessed signs of improved investor sentiment since Q4 2009 and this continued into Q1& Q2 2010”, comments Lenka Hartmanová.
DTZ forecasts that China will become the second largest real estate market globally by the end of 2011 – ranking only behind the US and overtaking Japan and the UK. The UK and France are the only European countries that are expected to feature in the top 5 global ranking by invested stock in 2011.
Hans Vrensen, Global Head of Research at DTZ, comments: “2009 was a tough year for real estate markets worldwide and saw the value of global invested stock decline by 6 per cent. However, the global real estate market is over the worst and we expect to see a return to growth in invested stock value this year, in line with the consensus macro-economic forecasts for a sustainable economic recovery worldwide.”
Transaction volumes across Europe declined by 44 per cent in 2009, despite a quarter-on- quarter increase since their lowest level in Q1 2009. European and global cross–border investments almost dried up in 2009 declining a further 59 per cent from the 2007 peak. In this negative global picture, Asia Pacific investment flows into Europe and especially the UK, were the only bright spot with a growth of 31 per cent in 2009.
Magali Marton, head of DTZ Continental Europe and Middle East Research said: “Continental European property markets were unable to avoid a decline in 2009. The last year was very difficult for both investor and occupier markets, but fortunately, the worst seems to be behind us. Globally, investors and lenders are expecting to do more business in 2010 than last year and Europe remains one of the favourite markets for cross-border investors.”
Based on its forecasts, global real estate adviser DTZ recommends that investors become pro-active buyers as a wide spread of European markets offer attractive ongoing investment opportunities for the next two years. DTZ Research identifies 151 out of 172 markets, or 90 per cent, across the globe as offering fair value in 20102. This is in contrast to last year, where only one international market, London City, was at fair value.
“In the Czech Republic total investment volume decreased by 58% year on year in 2009, however DTZ has witnessed signs of improved investor sentiment since Q4 2009 and this continued into Q1& Q2 2010”, comments Lenka Hartmanová.
