Office markets remain resilient
A positive approach can be taken towards office markets in 2015. Despite the notable economic slowdown for developing countries in 2015 which is expected to continue throughout 2016, economic predictions in Europe remain optimistic, says an analysis from BNP Paribas Real Estate.
Office markets in 2015 grew stronger with a positive take-up result. This is reflected in a rise of 11 percent compared to 2014 driven by strong performances recorded in German cities and mainly sustained by small and medium-sized deals. Vacancy rates decreased permitting a major prime rental growth.
A new record was set in 2015 as investment volume exceeded 125bn Euros in total and topped the record set in 2007 by 1 percent. While Central London remained the number one market in Europe investment, other European markets saw a significant growth with Lisbon on the lead (+465 percent). The drop in office prime yields continued and is expected to endure during 2016.
Based on these observations from 2015, European economy office markets are expected to remain resilient.