Europe

PROPERTY REPORT OFFICE MARKET IN EUROPE Q3

MARKET CORRECTION CARRIES ON IN Q3

All the European markets slowed down in Q3 compared to 2008 as employment decreased throughout Europe. Compared to the first two quarters of the year, take-up continued to decline in 15 out of the 24 cities analysed. Conversely, take-up increased in Rome, Amsterdam, Milan and notably in Central London. In fact in this city, take-up has increased in the largest sub-markets for two quarters. Moreover the financial sector has become more active. However the UK GDP decrease in Q3 reminds us to be cautious about any real recovery in the short term.

The take-up volume in Madrid has reached its lowest level since the beginning of the year 2000. In Milan after reaching a low point in the first quarter with just 36,000 m² of take-up, the market has returned to a higher level of activity thanks to large transactions, notably in the periphery. In Germany letting activity remained stable since the beginning of the year, after dropping in the first quarter.

Author(s): several

Source: BNP Paribas Real Estate

Published: 04.11.2009