Emerging Trends in Real Estate® Europe 2012 - PwC

Markets and Sectors
to Watch
If Italy defaults on its debt, what happens next and how
much would it cost? As 2011 drew to a close, and Italy’s
cost of borrowing pushed the 7 percent barrier, that
question was on people’s minds. The truth is nobody really
knows what would follow if Europe’s fourth-largest economy
is unable to service its €1.9 trillion of debt. It is just one of the
many unknown outcomes the region could be facing in 2012.
Greece could exit the euro, and it might not be the only one;
harsh austerity measures, inflation, new currency blocs, and
recession—all of these scenarios are on the table.
chapter 3
“2012 is about staying safe and not straying
too far from what you know. But even amid the collective cheer
for safe havens, dissent exists.”
ExHIBIT 3-1
Average City Prospect Ratings
good
fair
poor
2006
2007
2008
Source: Emerging Trends in Real Estate Europe 2012 survey.
Note: Investment prospects are the average of prospects for both existing and new investments.
Development Prospects
2009
How, when, and where will the European debt crisis end?
Only one thing is certain for Europe’s economies this year:
uncertainty.
In last year’s Emerging Trends report, investors said they
were eschewing a strategic focus on whole countries, cities,
or sectors in favour of asset-led, deal-by-deal approaches.
Given the economic outlook, that theme will persist throughout
2012. As described in chapter 1, interviewees reported that
nowhere can be considered a “must buy” today.
This was reflected in the survey data, too. Although more
Investment Prospects
2010
2011
2012
Emerging Trends in Real Estate ® Europe 2012
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