European property markets grow | 27 May 2011
Europe’s commercial property looks set to grow much faster than its competitors in the US and Asia.
Research from real estate firm DTZ has suggested that with the effects of the recession easing, demand for commercial properties could rise across the world, albeit significantly quicker in European markets. This rise could well see more people opting for property management software in order to keep abreast of the demands of their properties.
DTZ’s figures claimed that the European market will rise 20 per cent in the coming months to a net worth of $164 billion (£101.2 billion) whilst the US market will rise by eight per cent to $50 billion (£30.9 billion). It suggests that the Asian market will remain steady at $158 billion (£97.7 billion), registering little – if any – growth.
Head of DTZ Europe, Middle East and Africa research Magali Marton told commercialfinancegroup.co.uk that the positive figures could make for amendments in the economic forecasts, explaining: “With a declining funding gap, increasing equity and a more stable economic environment, bridging the European debt funding gap may not be as difficult as originally anticipated.”
One such change could come from the source of financing for those taking on new projects. Originally seen to be the territory of bank lenders, new ventures could soon be financed by insurance companies, in a way that has been done for years in America.
Speaking to efinancialnews.com, AXA Insurance’s Isabelle Scemama explained the system. “In the past,” she said, “lending into a commercial property was dominated by banks, who offered finance at levels that were too cheap to hold much attraction for us.”
“Now, with banks retreating, you will see more and more lending coming from insurance companies.”
Written by David Howells on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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