2. 2015-2016
Berlin Capital Partners
Berlín Capital Partners
Berlín Capital Partners is an independent real estate consultancy
and capital management company, Covering the European Market .
One of our important business values is to coordinate
consultancy ,research , competitive analysis with investment .
BCP standarizes management and maintaining costs with
Continous market analysis to keep gross yield return always larger than
circular market value
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8. 2015-2016
Berlin Capital Partners
Demand for European investment properties continues
Sentiment remains positive in the European property investment market with EUR285 bi-
llion in transactions last year. Demand continues to be driven by international investors. Ex-
cept for industrial properties, all categories had higher investment volumes than in 2014.
Office properties (40 percent market share) were the most attractive, followed by retail pro-
perties (25 percent market share) and residential properties (13 percent market share).
The UK and Germany
saw growth
In the largest investment market,
transaction volume of EUR91 billion
set a record in the UK. Compared
to 2014, transactions increased 24
percent. Germany the second lar-
gest European market, say a mar-
ked increase with EUR66 billion in
transaction volume. This was driven
by the ongoing consolidation of the
residential market. Spain was one of Europe’s fastest growing economies.
In Central Eastern Europe, real estate investment volume has been increasing for the past three
years. The French market had an excellent recovery after a disappointing start in the second half of
2015. The Netherlands has a positive economic outlook. In the Nordic region, cross border investors
are taking advantage of currency movements. In Turkey, the residential market was up 18.9 percent
in the past year compared to the 2.7 percent global average.
Austria is a stable market supported by a sustainable economy. Belgium is on the path of economic
recovery. Italy maybe out of the doldrums? Russia, though, is facing challenges and opportunities.
Peripheral European cities are seeing growth. International investors are increasingly focusing on
cities such as Milan and Madrid. The Spanish capital, with a volume of EUR5 billion, moved from 8th
to 5th in popularity among European investment locations. And Istanbul continues to be a center of
attraction for investors.
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9. 2015-2016
Berlin Capital Partners
Logistics
E-commerce grew 22 percent last in Europe, creating strong demand for warehousing space and
distribution networks. There are many opportunities for investment in and development of ware-
houses to service the e-commerce sector particularly in Paris, London, Berlin and Madrid. Logis-
tic premises are expected to grow significantly as the e-commerce business model streamlines
the supply chain through multiple retail/storage points. Demand for logistic assets are expected
to push up rents and values as retailers strive to secure the right property in the right location.
Global capital puts pressure on yields
Despite an initial weakening trend this year, we anticipate transaction activity in Europe to remain
strong. Sound economic prospects are underpinning demand for properties. An important driver is
anticipated to be the lack of alternative investments as investors search for returns in the current
low interest rate environment.
Thechallengingandincreasingcomplexrealestatemarketsrequireaclearfocusandaflexiblestrategy.
Much foreign capital continues to flow into Spain and the transaction volume was 134 percent higher
year-over-year.Incontrast,transactionactivityinItalyislosingmomentum.Comparedto2013,thetran-
saction volume was only 5 percent higher, which is attributable to the stagnant outlook for growth in the
Eurozone’sthirdlargesteconomy.InIreland,thevolumeoftransactionsincreasedagain,by89percent.
The outlook for 2015
The European Central Bank decision on 22 January 2015, to purchase Eurozone government
bonds valued at EUR60 bn each month (Quantitative Easing) should be reflected in lower finan-
cing costs, which will add further impetus to the European real estate market. With the Euro ex-
change rate under pressure,
the relative attrac- tiveness
of Euro investments will tend to
increase. It is widely anticipate
there will be further on the growth
seen in 2015. This optimism
is being dampened by uncer-
tainties in the political landscape.
These risks while hard to
quantify should not be overlooked
when considering the outlook for
investment trends in 2015 and
beyond.
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