“It remains to be seen whether these returns can actually be achieved. No clear market conclusions can currently be drawn from transaction activity, which is fragmented and has sharply declined,” says Martin Schellein, Head of Investment Management Europe at Union Investment. According to the study, most of the investors surveyed expect it will take more than 12 months for the transaction markets to pick up again.
Sentiment in the European real estate markets remains subdued overall. In the first half of 2023, the Real Estate Investment Climate Index (see chart) rose slightly in Germany, but continued to trend downward in France and the UK. Nevertheless, more than half of the respondents are planning to hold on to their properties or intend to make new investments in the coming year.
By Fabian Hellbusch and Lena Teuber (graphic)