2022 outlook for European real estate markets – The Property Chronicle
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2022 outlook for European real estate markets

Investor's Notebook

Re-alignment in a post-Covid world

Despite successful vaccination programmes and economic support policies, Covid-19 continues to impact our real estate markets. As the pandemic posts its latest resurgence, most European governments have been able to successfully limit its economic impact. This is offering a different environment for real estate as well, triggering the question how real estate investors can best re-align their investment strategy in a post-Covid world.

Inflation hits the headlines

The post-Covid rebound has surprised on the upside, as vaccinations and economic supports were successfully rolled out, leaving unemployment largely unchanged. However, stronger than expected GDP growth combined with supply chain disruptions and associated shortages have triggered higher inflation. In the past few months of 2021 there has been much debate about the drivers of inflation, with much focus on the short term, particularly the news flow of shipping and energy costs. The danger of enduring above-target inflation poses a new policy dilemma for central banks, as recent consensus assumed transitionary inflation. However, investors have priced in rate hikes and tapering. As a result, we consider the impact of a new inflation scenario besides our lower-for-longer base case. 

Inflation






Investor's Notebook

About Hans Vrensen and Irene Fosse

Hans Vrensen is Head of Research and Strategy at AEW Europe; his previous roles include Head of CMBS Research at Barclays Capital and Global Head of Research at DTZ (C&W). Irène Fossé is Associate Director - Research & Strategy at AEW, France. She joined the AEW Research & Strategy European team in May 2018 as an Associate Director. Prior to joining AEW, she worked at LaSalle for five years within the European Research & Strategy team. Her main responsibilities include economic and property market analysis in the context of European funds & separate accounts strategies, equity and real estate debt transactions’ underwritings and business development projects. She is also an active member of the ICSC’s European Research Committee. She holds a Master's degree from the Paris Institute of Political Studies (Sciences Po) & the London School of Economics.

Articles by Hans Vrensen and Irene Fosse

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