Investment Perspective - Europe Overview

Optimism building around strong occupier market fundamentals

Investment Perspectives: Europe Overview

Economic activity in the Eurozone surprised to the upside in Q1 2024, with real GDP growth accelerating to +0.3% quarter-over-quarter. That result was in line with the region’s long-run trend, and up from an average of virtually zero in 2023. The return to growth was broad-based across larger economies, with only the Netherlands recording a small contraction (-0.1%). Germany, France and Italy all recorded growth close to the regional average, while Spain continued to lead.

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By: James Purvis
Head of European Research

The data are increasingly suggesting that the correction in European real estate markets is close to complete.

James Purvis, Head of European Research

Looking ahead, the consensus is bullish that growth will now remain robust over the next couple of years.

Central Bank policymakers also remain on track to bring inflation closer to their 2% target in the near term, and as a result, markets are pricing in earlier and faster rate cuts from the European Central Bank (ECB) vs the Fed—a trend that has already kicked off with the ECB’s rate cut in early June 2024.

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