Standard Poor's negative outlook for the European real estate sector. Commercial rents are falling and vacancy rates are increasing in all sectors and areas.
Stockholm is probably the one that can resume its progress, as it is one of the cities that has lost the most and has the best chance of recovering.
As a counterweight to the negative trend, there is a strong demand for properties for investment purposes: large investors are in fact looking for properties to purchase that ensure long-term rental rates. The combination of low interest rates and the cash flow deriving from rents makes high quality properties particularly attractive.
The weakest position is that of the office asset market, as it is directly linked to the economic trend and therefore susceptible to strong trend reversals. Retail, however, according to Standard Poor, was the sector that performed best in 2002 and should continue to hold up throughout 2003. The industrial sector is stable, for now, even if demand is decreasing. All this in a report released today by Standard Poor.
source: Real Estate Observatory
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