Tenerife property prices set to improve?
As parts of Europe enters economic recovery mode many real estate markets are also improving but at markedly different rates, according to a new report on trends in the investment, office, retail, industrial, hotels and residential sectors.
In Europe improving investor sentiment is driving activity forwards for a specific band of prime real estate but financing remains difficult to obtain, according to the Jones Lang LaSalle CEE City Report for the third quarter of 2009. ‘Occupier activity across all sectors has slowed compared to previous years as similar financing issues prevent or delay relocation and expansion plans.
Rental levels are beginning to bottom out in most of the core CEE markets and we expect stability to fully return throughout 2010 once the supply and demand levels rebalance,’ said John Duckworth, Managing Director of Jones Lang LaSalle in the CEE. ‘These green shoots of recovery in the economy will still take some time to filter into the real estate markets,’ added Duckworth.
However, forecasts also suggest that the core CEE4 countries will gather momentum in 2011 and register average year-on-year growth of over 3% which is somewhat higher than the overall Europe forecast of 1%.
‘We believe that the lack of liquidity and the fall in positive sentiment that has affected CEE over the past 12 months, does now appear to be slowly changing. ‘Despite the recent positive news in the global economy, this will still take some period of time to work through into actual business confidence.
As the development pipeline continues to remain low again across all sectors, we expect a shift in balance from an occupiers market to a more balanced market in the second half of 2010 and then into a landlord’s market as we go through 2011,’ it concludes. If this report is correct that is great news for the property sector inTenerife, Spain and the Canary Islands.
