French institutions have a low exposure to their residential sector in comparison to German and Dutch investors in their domestic markets. This offers the opportunity for an increase in residential investments in France given the size of the market.
How is European retail going to face its challenges?
Direct property is relatively more attractive in Belgium than in the Netherlands according to our Direct European Real Estate Relative Value Index.
Since the Brexit vote in June 2016, the UK has gone from a macroeconomic outperformer to an underperformer due to the extended uncertainty on the final terms of the separation.
As yields on European commercial real estate have tightened to record lows over the last two years, investors are fully justified to question whether direct real estate offers sufficiently attractive returns.