REflexions - Issue 5
Real Estate - May 2017
The real estate market is about to enter an era characterized by new technologies, taxation regimes, and the recovery of economies. At the same time, we continue to face political uncertainty in Europe as an outcome of President Trump’s recent inauguration and the launch of article 50 commencing the Brexit negotiations. Inevitably, this will influence the real estate market; the years to come are potentially going to be the most exciting yet.
We start off with a look across the Atlantic. The US market benefits from a modest economic growth, but also has to face regulative burdens and the threat of higher interest rates, which will likely negatively affect the volume of transaction activity and pricing. Whereas there is cautious optimism in the US, the Spanish market is still prospering in the shopping center segment, thanks to strong economic fundamentals such as consumption – another topic on which we will focus.