Research Briefing | Jan 19, 2022

European real estate obsolescence risk lowest for the Nordics

Ipad Frame - Europe-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.
Back to Resource Hub

Related Services

Industrial property

Post

US: High debt costs suggest an industrial correction

The scale of the increases in debt costs, coupled with the low-yielding environment makes some repricing highly likely for gateway US industrial markets over the coming quarters.

Find Out More
Office building in London

Post

High debt costs suggest European office price correction

Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.

Find Out More