The DNA of Real Estate, Q2

Europe, Q2 2019

/sites/default/files/2019-08/DNA%20Real%20Estate%20Q2%202019.pdf

 

Snapshot: European real estate market in Q2 2019

The European logistics sector continues to perform strongly with strong rental growth and investor demand driving down yield by 2bps, whereas yields in the European office and retail sectors remained flat. The logistics sector saw prime rents grow 0.6% over the quarter and rising 2.8% year on year – its highest rate since March 2008. The strongest growth remains in Central Eastern Europe (CEE) markets with rents 4.4% higher in Budapest and 2.7% in Warsaw. The German city of Hamburg also posted strong growth with rents 3.4% higher over the quarter supported by a lack of stock and strong demand driven by a streamlining of distribution networks.