Real estate consultant Savills believes that investors will need to broaden their scope this year in terms of geography towards secondary locations amid growing competition for top assets in Europe.
In a note, Savills said that it expects the property market to stand out on investor radars with returns outperforming other asset classes though yields will come under pressure across Europe. It forecast 2017 investment volume to be steady from 2016 at around 200 billion euros.
“Since investors are in competition for the same assets in the same locations, opportunities are tailing away, which in turn puts upward pressure on prices,” the note reads.
Savills warned that shockwaves from the "Yes" vote for Brexit, Donald Trump’s victory in the US elections and Matteo Renzi’s resignation as Italian prime minister after a landslide referendum defeat, will continue to
reverberate through the European economy but that economic impacts are yet hard to quantify.