CBRE sees real estate recovery in 2014

A gradual recovery in economic performance and business confidence this year will usher in a stronger recovery for the European real estate market in 2014, says CBRE.

European property markets faced a difficult economic environment in 2012, with heightened fears of a euro break-up in the first half and flat or falling output across most of the continent by the year end.

This year has started on a more positive note, with the threat of euro desintegration receding, together with encouraging news from China and the US, underpinning some signs of improvement in market sentiment and business confidence.

According to CBRE experts, Poland was one of the strongest performers in terms of economic activity in Europe in 2012, along with Germany and Sweden.

'Improving sentiment and better fiscal stability within the eurozone is having a quiet but positive knock-on effect in Poland, a country that in itself is one of the brighter spots on Europe’s economic map,' said Colin Waddell, managing director at CBRE for Poland.

'It may not be overly visible in 2013 but we anticipate economic confidence to steadily build as we draw closer to 2014 and beyond. The current healthy levels of occupier activity in the industrial and office sectors are likely to remain and consequently investor interest in Poland will continue.'

While office take-up across Europe was down around 7% in 2012 compared with the previous year, in Poland it rose by 9% due to occupier activity both in Warsaw as well as in the regional agglomerations, mostly Kraków, Wroc³aw and the Tricity.

In the retail sector, Poland comes fifth among the markets named as key targets for expansion in Europe. With a total of around 140 stores planned to open around the country in 2013, Poland scores third after Germany and Spain in terms of the overall expansion potential.

According to CBRE, occupier markets are likely to remain relatively static in 2013, with rental growth most likely confined to a limited number of prime retail and office locations, where demand exceeds supply. Demand and rents for industrial space are expected to be broadly flat through 2013, although new requirements to support multichannel retail strategies are a potential bright spot.