| 2021 vision
With the year drawing to a close, a couple of new reports out this week focus on the outlook for real estate in 2021, and both paint a broadly positive picture, for the post-Brexit UK residential market, and the European commercial property market.
According to the European Real Estate global survey by international law firm DLA Piper, which quizzed 500 investors, developers, and asset managers with more than USD3 billion AUM from across Europe, China and the US, 33 per cent regard the UK as their No1 residential investment choice, followed by France (28 per cent), Germany (25 per cent), Spain (24 per cent) and Italy (18 per cent).
"The UK remains an attractive market for investment also post-Brexit which should provide confirmation and reassurance that the UK is a vital hub for activity and growth," says Olaf Schmidt, Real Estate partner and Managing Director of Practice Groups at DLA Piper.
CBRE's EMEA Real Estate Market Outlook 2021 meanwhile, says that despite the severe impact on economic activity triggered by the Covid-19 pandemic, the European commercial real estate market is well-positioned for a recovery, with investment volumes expected to return to pre-pandemic norms by 2022.
The survey predicts that euro area GDP will contract by 7.3 per cent in 2020, before recovering by 4.6 per cent in 2021, assuming the lockdowns ease and a broad-scale vaccination becomes available.
With the prospect of a widespread vaccination roll out in the New Year, a return to normality could be on the cards, but not for London's housing market, according to flatshare site SpareRoom. The firm's latest research suggests that 49 per cent of the capital's renters who intend to move plan to quit the city for good once the pandemic is over.
"We’re looking at a redrawing of the UK’s rental map in 2021 and London will be the biggest loser," says SpareRoom director Matt Hutchinson.
Responsible and sustainable real estate investing is also on the agenda again this week with news that Aviva Investors has committed to originating GBP1 billion in sustainable transition real estate debt over the next four years, supported by the launch of its proprietary Sustainable Transition Loans Framework.
We also report on the launch of a new sustainable residential real estate fund for Institutional Investors by KINGSTONE Investment Management, and what BNP Paribas REIM says is the first property fund that aims to be compliant with the 2015 Paris Agreement.
And finally, sticking with the green theme, we report on how British Land is planning to fulfil it's commitment to achieving a net zero carbon portfolio by 2030. "Our ability to deliver sustainable and efficient buildings is a clear advantage in a market increasingly focused on high quality space and at British Land, we recognise the responsibility and opportunity we have to make a difference," says Simon Carter, Chief Executive of British Land.
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