Property update: Where are the global hotspots?

ON SPECIALIST MARKETS

In property markets, the negative economic backdrop is undermining rental growth. The banking sector is reluctant to offer finance and real estate markets are generally sluggish. However, on the positive side, development pipelines are limited and in some markets rents are increasing, although they are likely to be contained going forward as real estate normally lags the real economy.

Despite the crisis engulfing the eurozone, the picture across European property markets is mixed. Demand for German residential property and all sectors in Switzerland remains high. In Sweden, the office and retail space is reasonable. However, city markets like Paris, Brussels, and Amsterdam are facing some headwinds. The UK is mixed, with London in relatively good health, although we anticipate that job losses in the financial sector will have a negative effect. Demand for new development sites and rental levels are likely to be impacted by a subdued UK economy. In the US there is s...