Cost of financing and capital availability are some of the core challenges this year for real estate companies in Europe, shows a Deloitte survey.

Average office occupancy rates across eight major European markets have risen in the last six months from 55% to 57%, says Savills, however on Tuesdays and Wednesdays, the average is 64% and 62% respectively, closer to the pre-pandemic rate of circa. 70%.

VGP has announced the establishment of a new 50:50 Joint Venture named “Saga” with Areim, an independent fund manager and property owner headquartered in Stockholm. The Saga Joint Venture will focus exclusively on key European markets, including France, Germany, the Czech Republic, Slovakia, and Hungary.

Savills Investment Management announced its global outlook for real estate investment markets in 2024, highlighting several key sectors it believes offer rewarding opportunities for informed investors.

Real estate developer Atenor has concluded a share capital increase of €181.5 million and it has reached €257.5 million following the completion of this operation.

Higher disposable income across CEE markets are outpacing those in more mature Western European economies, with existing retail spaces trying to keep up with growing demand, according to a NEPI Rockcastle report.

According to Workthere.pl’s latest Flexmark report, larger companies (101+ people) and scale-ups (21-100 people) now account for 54% of global flexible office members, compared with 42% of members last year. The flexible office specialist notes that this increase is also reflected in take-up levels with these larger companies accounting for 34% of global take-up in flexible offices, compared to 22% in 2022 and just 13% in 2020.

In the third quarter of 2023, the European Union investment market exhibited restrained performance, registering a transaction volume of €23 billion which, in turn, represents a noteworthy year-on-year decline of 57%. The cumulative transaction volume for the initial three quarters of 2023 amounted to approximately €80.4 billion, with domestic investors accounting for 53% of these transactions. Markus Arnold, the CEO and sole proprietor of Arnold Investments, observes "a sustained trend where equity-strong private investors continue to be highly active". The leading asset class on the European investment market remained offices with a transaction volume of €24.3 billion, comprising 30% of the total, followed by residential properties (€16.5 billion; 21%) and retail properties (€14 billion; 17%).

Prime yields for apartment blocks, which move in the opposite direction to prices, continue to rise across Europe and stood at 4.35% in Q3 2023, 38 basis points higher than in the first quarter this year, according to research by Catella Group.

Steffen Szeidl, CEO of Drees & Sommer, spoke with Property Forum at Expo Real about the challenges of property development and the potential for business growth in Europe. He cites the electrification of the economy and the upgrade of the existing stock of buildings as new growth avenues for Europe.