Over the last few years, institutional investors have increased their exposure to non-traditional or alternative property types, which represented 14% of total direct real estate investment volumes in Europe in the first half of 2018.
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.