Whilst improving global economic conditions during the first quarter of the year are supporting sentiment in most parts of the world, EU markets continue to lead the way. With respect to occupier demand growth, Madrid, Budapest, Dublin, Munich, Berlin and Lisbon, posted particularly strong results, according to the latest RICS Commercial Property Monitor.
In terms of global investment trends in commercial property, the latest results point to Spain seeing the sharpest quarterly improvement in market conditions. Indeed, respondents reported a robust rise in investment enquiries during Q1 and are now more confident of seeing further near-term capital value growth than at any other point since 2008 (net balance of +62 percent). When broken down, projections in Madrid are slightly stronger than the national average.
Elsewhere, Hungary, the Czech Republic, Germany and Ireland all retained strong Investment Sentiment Index* readings. In each case, growth in demand is outstripping that of supply (in net balance terms), producing solid expectations for capital value growth. Notwithstanding this, across Prague, Hamburg, Frankfurt, Munich and Berlin, perceptions are rising that market conditions may be close to peaking.
Looking at market sentiment Post-Brexit, this quarter, the highest proportion of respondents across Dublin and Amsterdam reported seeing enquiries for space from businesses looking to relocate some part of their business away from the UK (relative to all other areas).
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