Real estate M&A activity in Europe
Still on the growing path
Over the past four years, Europe has shown strong economic growth and has positioned itself with a solid foundation for a sustained recovery. Therefore, accompanied by historically low interest rates, the macroeconomic forecasts for the coming years are positive.
We have seen high levels of direct and indirect investment in real estate due to the record difference between real estate yields and fixed income (bond) yields (“Real Estate Premium”).
Bond yields have fallen considerably, to record levels. However, there have been significant increases in the stock market despite bouts of volatility brought on by events like Brexit and the US elections. As seen in Graph 1, the market has evolved positively in general terms; however, the performance of real estate players has improved and been more stable than other indexes.
REflexions issue 7 - April 2018
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.