European Leading Indicators | Real estate sentiment starts to improve
1 minute to read
Here we look at the European leading indicators in the world of economics.
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Key insights:
The Euribor swap rate has been trending downwards
In early August, the 5-year Euribor swap rate dipped below 2.5% for the first time since January. It currently trades at around 2.4%, down from approximately 3.3% a year ago, leading to debt becoming more accretive to returns on more core real estate across Europe.
Global real estate sentiment reaches its highest level since April 2022
The Global Real Estate Sentiment Index increased to -15.5 in August, the highest reading since April 2022. Amid recent equity market volatility driven by weak US employment data and a correction in US tech stocks, investors may turn to safe-haven assets like real estate.
Residential #1 in Europe in Q2 2024
In Q2 2024, total European CRE investment volumes reached €43.3bn, up 15% on Q1 and a 2% increase compared to Q2 2023, according to MSCI Real Capital Analytics. The residential sector led with €10.8bn in investment, followed by offices (€10.1bn) and logistics (€9bn). Residential (+22%) and hotel (+85%) were the only sectors in Europe that recorded an increase in investment YoY in Q2 2024.
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