Cushman & Wakefield has identified “green shoots of recovery and growth”, highlighting buying opportunities across all sectors of the European real estate market – including offices.
The agency’s TIME – or Timing Investment Market Entry/Exit – Score Index uses historical data and economic indicators to track the cycle. Scores range from 1 (contraction) to 5 (expansion), with a higher reading suggesting that conditions for deals are favourable.
Offices, which had lagged other sectors, now has a score of 2.7. Logistics and industrial, residential, retail and hospitality have scores ranging from 3 to 3.2. The “all property” figure is 3.
Sukhdeep Dhillon, head of EMEA forecasting at Cushman & Wakefield, said: “The inflection period is really exciting as this is when market trends start to change direction. This phase signals a shift from decline or uncertainty to recovery and growth, marked by a stability in prices, higher demand, and better economic indicators. It represents the optimal point to capitalise on the early growth and expansion periods that follow. Significantly, this is the first time we have seen all sectors in this opportunistic position since Q2 2022.”
James Chapman, head of EMEA capital markets, added: “The recovery phase in the commercial real estate market presents a strategic opportunity for investors to capitalise on stabilisation and growth trends. We are seeing this feed through into some bigger-ticket items being brought to market after a long absence. As market sentiment revives, the potential for lucrative investments becomes increasingly apparent but with allocations to real estate also likely to rise, it is important that investors act swiftly if they want to seize on early opportunities.”
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