Europe’s commercial markets are in the best health since the global financial crisis.

The newly constituted European Capital Markets Board of Knight Frank voiced hope for the future of the European real estate markets as the industry arrived at Show Real, the international trade expo for real estate and investment. doha sale

“For the first time since the Global Financial Crisis, the Eurozone is displaying solid economic growth,” said Andrew Sim, Head of Global Capital Markets at Knight Frank. “We’re witnessing stability and growth throughout Europe’s major real estate markets, including the UK, Germany, and France, as well as optimistic sounds coming from the increasingly appealing Dutch market.”

“Unemployment in the United Kingdom is at an all-time low, notwithstanding the uncertainty surrounding Brexit discussions.” Office take-up by the tech and creative industries actually increased in the first half of 2017 as compared to the same period in 2016, with confidence indicators rising and office take-up by the tech and creative sectors really growing.

“As a result, despite the uncertainties, London was Europe’s most active investment market in the first half of 2017, with prices rebounding to levels seen prior to the referendum.”

“As the concept of a two- or three-year ‘transitional’ arrangement for Britain after it exits the European Union takes hold, more and more investors anticipate the London capital markets to return to’status quo,’ we expect increased activity.”

“Pricing in Germany is looking sharp,” said Hanns-Joachim Fredrich, Knight Frank’s Head of Capital Markets Germany. “Offices in key business areas are trading at all-time highs, with high demand pulling prices higher.” Despite the fact that investment into Frankfurt has increased considerably as a result of the current Brexit discussions, a scarcity of suitable goods is hampering its deployment.

“Not just elite offices and retail, but also hotels, residential, and healthcare, are benefiting from the strong investor demand.” Due to extremely strong investor demand for residential buildings, there is a commercial development scarcity in Germany’s top seven cities. Two or three years before they are completed, most office buildings are pre-let.

“Now is the time to activate existing property with building rights and commence speculative development to take advantage of the present lack of existing plans and high demand for the limited office space available,” Knight Frank recommends.

“The market has received a major boost as a result of President Macron’s election win,” said Vincent Bollaert, Head of Capital Markets France at Knight Frank. There is confidence, energy, and activity on Paris’s Ile de France, with the vacancy rate dropping swiftly to 6.6 percent. The core business district today has a 3.1 percent vacancy rate.

“We expect the labor market will continue to grow, with the IT sector accounting for up to 15% of total employment in Paris post Brexit,” says the report. All of this leads to a strong investment market, with prime rates ranging from 3% to 3.25 percent, which is a new low for the central business district.

“We’re witnessing an uptick in demand from overseas purchasers in the second half of this year, despite French investors accounting for 63 percent of sales in the first half.”

“For investors seeking an alternative to more costly European markets such as London, Paris, and Berlin, Amsterdam is becoming increasingly enticing,” said Fred Rikken, Head of Capital Markets Netherlands, Knight Frank. High office vacancy rates were formerly a cause of concern for investors, but supply constraints have developed in the most sought-after business areas. ​

“With strong demand from the city’s lively and growing technology industry, limited supply will drive rental growth and create opportunities for new construction, but the biggest issue in the coming year will be a lack of enough core investment product,” says the report.

“Europe’s real estate markets are in better shape than they have been since the Global Financial Crisis,” said Andrew Sim, Knight Frank’s Head of Global Capital Markets. We anticipate sustained positive statements from investors during this year’s conference.”