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Generali Real Estate 2015 Outlook

  • Investment volumes to increase again in Europe. Southern European markets to offer greater prospects for medium-term rental growth
  • Singapore and Japan to outperform in Asia

"In 2015 we expect investment volumes to increase again in Europe, despite the poor economic outlook", said Jacques Plas, Head of Research of Generali Real Estate. "We recommend focusing on Southern Europe and the Netherlands, which offer greater prospects for medium-term rental growth".

Generali Real Estate, one of the world's leading real estate asset managers with €28 billion of AuM, and part of the global insurer Generali Group, is expecting another positive year for the real estate business in 2015.

In Europe, investment volumes are likely to rebound, with outperformance expected in Southern Europe and the Netherlands as investors are increasingly focusing on recovering markets.

In the United States, secondary locations are likely to offer higher potential upside than the gateway cities, which shall continue to attract international capital. The overall office vacancy rate is likely to continue its gradual decrease, and further annual rental growth is forecast. In the United Kingdom, Generali Real Estate expects the current upward momentum in property prices to wane gradually, as initial investment yields stabilize, especially in Central London.

Singapore and Japan are expected to outperform in Asia. Regarding China, Generali Real Estate expresses some concern with the growing oversupply and the sustainability of development activity overtime.

Looking back, 2014 was generally a positive year for the real estate business. The general improvement in financing conditions and economic confidence might largely explain the expansion of investment volumes, especially in the U.S. and UK markets.

In Europe, investors turned to recovering markets such as Ireland, Spain and The Netherlands. Core markets such as Germany and France held up well despite weak economic growth. In this globally favorable environment, the second half of the year saw initial yields continuing to decline, while overall capital growth remained relatively strong.


GENERALI REAL ESTATE
GRE is one of the world's leading real estate asset managers with €28 billion of AuM.
GRE's portfolio - consisting of a unique mix of historical and modern buildings - is located throughout Continental Europe, UK, Asia and the US.
By leveraging the expertise of 500 talented professionals, GRE deploys best-in-class skills in the fields of technological innovation, sustainability and urban redevelopment.
GRE is part of the Generali Group, a Fortune 50 company and one of the world's largest insurance providers with 77,000 employees worldwide serving 65 million clients in more than 60 countries.

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