Doug O’Donnell attended the GRI Europe commercial real estate summit last month in Paris, France. This summit focused on European real estate investments and developments.
It’s amazing how similar the situation in Europe is to that of the United States.
This is what the European commercial real estate experts had to say:
Fundamentals are becoming really important again: local presence and local knowledge are more than ever key factors to success.
Investors are looking for income producing properties, for quality assets. This leads them to core markets. Investors are looking for centers that can resist the crisis, centers that will keep attracting consumers.
Consumers will go to the best centers, because even in a gloomy economy they need to consume.
On the bond side, interest rates will remain low for a long time.
Money is moving into real estate because equity is becoming too volatile. The stock market will continue to bring more money into core real estate, as stock markets are going down.
There is a gap between the expectations of buyers and sellers.
For government, the only solution to debt issues is inflation. Real estate offers protection against inflation, and thus capital preservation.
There is no paradise anywhere!
*Source: GRI Europe Summit 2011 summary package by the ESSEC Business School