Higher build costs and longer construction periods pose a potential headwind for profits. But in select markets, developers have the ability to charge a premium rent and potentially exceed required returns.
With vaccinations reducing hospitalization rates, lockdown restrictions are easing and Europe’s economies are re-opening. High-frequency survey data is robust for both services and manufacturing sectors, indicating a broad-based recovery. In the immediate term, the pace of vaccinations—in particular, second doses—and new cases versus hospitalizations will be key to assessing the immediate risks around the recovery.
You can now read the full whitepaper at the link below