60 Second Property Digest – European real estate outlook 2023

Judith Fischer, European research, gives a high-level overview of how European property markets are performing and adapting in an era of high inflation and rising borrowing costs.
Written By:
Judith Fischer, Knight Frank
1 minute to read

European real estate outlook 2023

Read more in our European outlook article which provides an overview of real estate markets across Europe from our expert researchers on the ground.

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Tighter lending criteria will contribute to the polarisation of performance in commercial real estate between the best and the rest.

Private capital, safe haven investors, the ability to secure debt refinancing and those looking for opportunity are likely to help support the pricing of best-in-class real estate.

The focus is likely to be on smaller, individual sub-€100million deals. There may also be equity and JV opportunities that become apparent in order to provide refinancing solutions following an increase in the cost of debt.

The living sectors such as counter-cyclical student and affordable housing sectors are expected to see attractive growth.

In areas with an ageing population, demand for senior housing will continue to grow. Counter-cyclical discounters and lower beta food stores are also expected to continue to hold demand.

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