Friday, 12 January 2018

What does it say about Berlin? Avison Young releases 2018 North America and Europe commercial real estate forecast.


Change and opportunity will abound in 2018

TORONTO, Jan. 11, 2018 /CNW/ - Rapid change is underway in the world's commercial real estate industry, and the dynamics are in flux as the current investment cycle enters its latter stage. The industry continues to contend with differing property fundamentals across asset types, markets and regions, with occupier behaviour, innovation and technology acting as key sources of change that are taxing the sector. The current interest-rate environment is another contributor to this change – albeit a somewhat limited factor.

These are some of the key trends noted in Avison Young's 2018 North America and Europe Commercial Real Estate Forecast.

Berlin

German capital remains on its remarkable growth path.

Investment

Demand from national and foreign investors for investment product will remain high in 2018. As major assets, such as the Sony Center and the Upper West, were sold in 2017 and availability of product is expected to decrease, investment volumes could fall short in 2018. As in most German markets, investors continued to move up the risk curve in 2017 and showed great interest in value-add product and forward-sale deals. Strong interest and high investment volumes for development land underscore this trend. Accelerated yield compression was recorded between 2015 and 2017 –
especially in the office segment, where Berlin now represents the country’s prime yield. However, prime yields are likely to have reached their low and all signs point to a gradual stabilization at this level.


Avison Young's 2018 North America and Europe Commercial Real Estate Forecast

The Full report is availabel on http://www.avisonyoung.com/en_CA/

For local support in Berlin during all phases of the investment cycle please contact us through our website berlin-portfolio.com or directly info@berlin-portfolio.com.


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