Property market in Europe

As estimated by Eurostat (Statistical Office of the European Communities, European statistical office), the balance sheet of construction in 2013, production decreased 2.4% in the Europe area and 0.8% in 28 countries around Europe including UK with monetary independence.

The largest declines occurred in Spain (-2.9%), Slovakia (-2.3%) and Germany (-1.7%), and the highest increases in Slovenia (7.6%), the Czech Republic (7.2%) and Romania (4%) . Eastern Europe has become a magnet for developers and real estate mobilizing new investments in emerging areas. The largest decreases were detected in Portugal (-15.1%), Bulgaria (-7.9%), Slovakia (-5.0%) and Poland (-4.3%) and, moreover, the largest increases were in Slovenia (27.3% ), Hungary (10.7%), Romania (7.6%) and the UK (5.1%).

The fragmentation of local markets, with very particular dynamics, determine the economy in the sector; however, all European markets share a common denominator: at higher prices, residential property has started to see a weakening demand. Do not forget that most countries face a slowdown or contraction of GDP. In the short term not overly positive signs are seen, but optimism is slowly re-emerging after the shock of the financial crisis.

This uncertainty has infected the office property market, lowering their demand for the limited results of economic activity. Expansion plans are paralyzed, and measures such as reducing costs and cutting employees are priority. In the retail market, the demand for commercial space, considering strength, paradoxically revitalized its competition with greater opportunity spaces. On the one hand, the development of commercial centers and other national retailers and international brands always interested in the inner cities to strengthen its presence.