Situation in office real estate market
15 May 2009Profitableness growth reduction in the market of office real estate in Europe has finally overcome crisis. Such information has been represented in Jones Lang LaSalle’s report.
According to company Jones Lang LaSalle, in the first quarter of 2009 the minimum average rate of profitableness of office real estate in Europe has increased by 20 basic points, from 5,8 % to 6 %, that is much less, than growth on 50 basic points between the third and fourth quarter in 2008.
Jones Lang LaSalle analysts believe that profitableness rates in many markets, including London and Paris, can reach the marginal level till the end of the year and in some cases can even start to decrease.
German and Italian markets still show the most contained growth of profitableness from the moment of the beginning of market crisis (50-60 basic points within the last 12 months). All German markets remained stable throughout quarter; profitableness rates in Milan have grown, in the meantime, on 15 basic points, and remained stable in Rome. Profitableness rates have shown the highest growth (50 basic points) in the markets of Bucharest, Dublin, Moscow and St.-Petersburg.
