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Commercial real estate in Europe is close to the end of the crisis - AEW

Commercial real estate in Europe is close to the end of the crisis - AEW

Commercial real estate in Europe is close to the end of the crisis - AEW

The crisis that has affected the commercial real estate segment in Europe is coming to an end, according to AEW, one of the largest real estate investment managers in the world.

The outlook for next year is also becoming increasingly optimistic. According to a report cited by Bloomberg, commercial real estate is expected to recover and grow at an annual rate of about 9.2%. UK growth is forecast to be even higher at 10.7%.

The management company notes that the rapid rise in UK and eurozone interest rates over the past two years has interrupted long-term economic activity in real estate in Europe, leading to a 30% decline in the value of logistics warehouses over the past 18 months and a 20% decline in office space.

The head of strategy and research at AEW, Hans Wrensen, said, "What has really changed is the depth of the price adjustment in 2023." Nevertheless, the outlook is optimistic.

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"Our outlook for 2024 may be surprisingly positive as we believe the adjustment is almost complete," he added.

Investment in commercial real estate also declined in Portugal, with €321 million worth of transactions in the third quarter of 2023, down from €1.053 billion in the year to September. That's a 40% decline from the same period last year, according to the latest Marketbeat Snapshot report from Cushman &

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