Despite the ongoing home market recession all across Europe, there is a visible slow yet steady growth in the real estate industry.
"As confidence has returned to global real estate markets over recent years, there has been a progressive movement up the risk curve. Investors have found prime assets expensive and hard to source, and have in turn looked to find new opportunities in recovering secondary cities, secondary assets and development opportunities, as well as new or alternative real estate classes...There's still hope for investors, developers, and home buyers out there" said Lisette Van Doorn, chief executive of the ULI Europe, who was quoted as saying in an article featured on propertywire.com.
Still in the same article, Simon Hardwick of PWC legal said, "Smart investments will be the types of property that benefit from population growth, urbanisation, an ageing society and technological innovation. Nonetheless, we expect this next part of the cycle to be balanced by increasing concern about the resulting risks". This means that risks are what keeps the balance between smart home buying and investing.
Knightfrank.com also gives an insight on Europe being on recovery mode after years of battling out in the real estate arena together with other emerging global markets such as Spain and Italy.
With the demand still shaky and the annual inflation rate for the euro are currently lower than 1%, these measures were also designed to fend off a potential deflationary scenario and were broadly welcomed. However, there are still reasons to stay optimistic. Despite countless dire predictions of encountering a messy break-up, these bond yields are now back to lower levels following the seemingly unimaginable highs seen three years ago. Unemployment remains a major concern all across much of Europe, with youth unemployment high, as mentioned in the same article.
