New European retail report launched
15 November 2007
Pan-European retail property market remains positive - opportunities exist even in times of slowdown, says King Sturge.
King Sturge has released its European Retail Property Markets Report 2008. The report, officially launched at MAPIC, explores the climate for cross–border retail property investment across the Continent, particularly in the light of the anticipated slowdown in the market. Although some degree of correction was inevitable after many benign years, the fundamentals that underscore the pan-European property market remain positive:
- Investment remains at record levels, with a growing trend towards cross-border deals
- There is a very strong pipeline of good quality retail schemes across Europe
- Occupier demand is strong, with retailers increasingly embracing international expansion
- Retail rents are generally subject to upward pressure.
However, the property community will have to work much harder to adapt to these tougher market conditions. To this end, we advocate a much more strategic approach to stock and site selection, in tandem with a far more proactive stance towards asset management.
The key message is that opportunities exist even in times of slowdown. However, we bring into question some of the current trends in investment. Specifically, is capital being channelled into the most appropriate markets? Countries such as Germany are forecast to achieve relatively low returns, yet still continue to attract seemingly disproportionate levels of interest and investment. The report explores alternatives to merely ‘following the pack’.
