Investment in commercial property in Europe should increase in the latter part of 2009 following a disastrous first quarter, which saw just EUR 11.4 bn invested in the sector, Cushman & Wakefield predicts in its latest Economic Pulse report.
Investment in commercial property in Europe should increase in the latter part of 2009 following a disastrous first quarter, which saw just EUR 11.4 bn invested in the sector, Cushman & Wakefield predicts in its latest Economic Pulse report.
However, the adviser notes that financing and refinancing remain a major area of concern, with the funding gap looking formidable as loans mature in the next few years and as banks and businesses continue to repair their balance sheets.
'Most major banks are heavily exposed to real estate and while this limits the degree to which they will increase their lending, it also means it is not in their interest to drive values down further by refusing all refinancing and forcing defaults,' C&W says.