This company expects that profitability in the prime zones will go down 30-40 basic points over Western Europe as a whole, that rents will rise between 2 and 3%, and that investment volumes in Europe will go up 6%. Additionally, the report predicts that Asia will overtake North America as the principle source of capital in Europe this year, although the European countries will also compete amongst themselves, crossing more borders in the search for the best combination of growth and stability.
Currently, cities like Madrid and Barcelona are in the process of renovating their existing properties to adapt to investors and occupiers. It is likely that international investors are considering joining with local investors to their mutual benefit.
Spain among the priority zones for investors España
The report identifies key zones which offer balanced growth, such as Germany – with Berlin at the head – and the Nordic countries, followed by Spain, especially Barcelona and Madrid. “Spain is an attractive option for international investors, given that its predicted income for 2017 maintains the balance between economic expansion, consumer confidence, high occupancy demand and growth in rents in all sectors”, states Reno Cardiff, managing partner at Capital Markets Business Space in Spain. Cushman & Wakefield predict rent increases of 10% for Madrid and 5% for Barcelona during the year.