European real estate obsolescence risk lowest for the Nordics
Our new index of European real estate obsolescence finds that the Nordic countries have the lowest risk of obsolescence and are best placed for the climate transition.
What you will learn:
- We believe that locations with a lower obsolescence risk will benefit from more-defensive future returns over the medium to longer-term, as investors re-weight portfolios to align with net-zero commitments.
- Less risky locations will benefit from the lower cost of capital.
- Countries that are higher up the obsolescence risk scale will present opportunities for value-add and opportunistic strategies to green the existing stock.
Easing financial conditions offer CRE some respite
Our measure of financial conditions has become less restrictive in the US and started to loosen in the eurozone and the UK, reflecting investors' expectations that interest rates have peaked. This should aid the outlook for commercial real estate (CRE) on the margins, although the scale of past rate hikes, sluggish economies, and structural headwinds mean the sector still confronts challenging fundamentals.Find Out More
Eurozone key themes 2024 – A fragile recovery will gain impulse
After a year of stagnating activity, the eurozone economy will continue to struggle to gain traction in the near term given multiple headwinds. But we expect a gradual recovery in 2024 that will gather momentum as consumers regain some of their lost purchasing power and financial conditions ease.Find Out More