08 febbraio 2008

«CB Richard Ellis Group Inc.’s forthcoming market report - EMEA Offices Market View report – indicates that occupier demand across Europe remained strong through 2007. The full-year total of over 10 million sq m was on a par with the previous year, and continues a sustained period of strong leasing activity in Europe. Despite the expected indications of growing caution among occupiers, particularly in the financial sector, the overall level of activity remained healthy in the fourth quarter, at 2.5 million sq m.

Local variations in patterns of leasing activity started to become more prominent in the fourth quarter. Demand fundamentals were more robust, with territories such as Germany enjoying high levels of leasing activity similar to previous quarters. CEE markets also continue to generate strong take-up as a result of fast growing economies and high levels of Foreign Direct Investment.

Some major financial centres, such as London and Madrid, saw reduced activity in Q4 as a result of weakening demand from financial services associated with the ‘credit squeeze’.

This period of strong demand has continued to support rent growth, with the CB Richard Ellis EU-27 Rent Index up by 1.1% in the fourth quarter and 9% in year–on-year terms. Both figures are, however, lower than the corresponding third quarter numbers. As with demand, there is significant variation in rental growth across the region. The major markets of London, Paris and Madrid that contributed heavily to the recent growth in the index are now seeing rents grow more slowly or decline. The exceptions to this trend again focus on several of the CEE markets and Germany with prime Frankfurt rents, for instance, up by 13% year-on-year.

Richard Holberton, Director of CB Richard Ellis’ EMEA Research and Consultancy, said: "With economic growth forecasts being downgraded for 2008 in some of the major European countries, office demand fundamentals could soften. Although rental momentum will still be evident in a number of European locations, the overall pace of growth is likely to slow over the next few quarters."

Reflecting the onset of slower rental growth, yields have begun to drift out. The CB Richard Ellis EU-27 Index of prime office yields rose by nineteen points to over 5.1% in the fourth quarter. Yield movements have been most rapid in Central London but, unlike the third quarter, are no longer confined to the UK. The first signs of increase in prime yields are evident in several European markets such as Paris, Brussels and Madrid. Again CEE markets buck the trend with some, including Moscow and Warsaw, seeing further yield reduction in Q4» (CS della Società).