European property prices set to improve?
Property prices across Europe are expected to fall at a slower rate as the economy starts to level out, according to a report released by Invista Real Estate Investment Management. Conditions for the economy in the eurozone during the first half of this year were the worst since it was formed, although signs are that things are starting to improve.
The European Central Bank reports that more European banks have increased their lending, while the cost of borrowing has fallen sharply. The report says that improving property yields could increase the long-term attractiveness of investing in property.
Tim Francis, director, Continental European strategy and research at Invista, says: “With improved visibility on bottom-of-the-cycle valuations, we are in a better position to judge market pricing against fair value. This will assist in identifying attractive investment opportunities across these markets, some of which are experiencing distressed selling.” We expect deal flow to improve during H2 2009 as the other mature continental European markets including Spain and Tenerife catch up.
