21.11.11
Many European Countries Led by France Reported Strongest Positive Capital Value Change in Q3 2011 Moscow, 22 November 2011 – CBRE’s European Valuation Monitor saw a continued divergence in the recovery of European real estate values throughout Q3 2011.
While, in aggregate, values rose slightly in Q3 (+0.2%), there was a distinct performance split, with half the countries measured seeing property values fall and the other half rising.
The value changes are strongly correlated with those countries where economic growth has been most robust over the last year. Central and Eastern Europe (CEE), the Nordics (Sweden in particular), the UK, Germany and Russia have seen the most positive capital value change. With the economic outlook particularly volatile in Southern Europe, it is notable that the pace of value declines picked up across this region this quarter with the exception of Spain, although values there are already 35% below their peak.
Despite its relatively weak economic growth, property investment volumes in France were strong in Q3 and the country also saw the greatest quarterly increase in capital values (+1.9%), which took it to the top of the table in Western Europe in terms of annual growth (+5.3%).
The rise in values was particularly driven by the capital value growth of French offices (+3.6%), whereas the performance of its industrial (0.0%) and retail sectors (+0.7%) were more modest. Within the CEE region, Poland, Czech Republic, Hungary and Romania all saw positive capital value increases this quarter; although it is Poland which continues to lead the way with strong annual growth of +5.4%.
Andrew Barber, Senior Director, Valuation Advisory, CBRE, commented:
"Broadly speaking, the aggregate picture in Europe, where we saw a +0.2% growth in values, masks an increasing disparity between those markets which are being troubled by economic and sovereign debt issues and those which are seen as ‘safer’, more liquid markets. We are particularly seeing a strong correlation between the economic and real estate performance in each country. We expect this trend to continue to the end of 2011."
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com and www.cbre.kz