2020 House View: European Property Market Outlook


Will McIntosh
Global Head of Research

Karen Martinus
Senior Associate, Research

Justin Hildebrandt
Managing Director, Development

Max von Below
Managing Director, Global Investors Group

March 2020

Market Insights

We are pleased to present our 2020 House View for Europe. This annual publication highlights our outlook for the economy, the capital markets, and commercial real estate (CRE) sector.

Executive Summary

  1. The global growth outlook appears to be softening, and while the European economy is currently forecast to deliver Gross Domestic Product (GDP) growth of around 1.0% in 2020, there is risk to the downside.
  2. Monetary policy is expected to remain supportive of real estate investment, with encouragement building for further fiscal stimulus.
  3. Real estate continues to offer attractive relative value in an environment where government bonds and economic growth are expected to remain low.
  4. Capital available for deployment into real estate is near all-time highs, and investors continue to target the sector.
  5. The growth potential of Europe’s logistics sector makes it an attractive long-term investment.
  6. Geopolitical tensions remain a key downside risk to the economic outlook.