Emerging Trends in Real Estate® Europe 2012 - PwC

ExHIBIT 3-6
Best Sectors for Acquisitions in 2012, by City
Source: Emerging Trends in Real Estate Europe 2012 survey.
sector recommended by 30 or more 15–29 14 or fewer respondents
“It is a refuge market in these times,” said one interviewee.
The office sector was overwhelmingly favoured and ranked as
one of the top three in Europe in the survey, behind London and
Paris, a function of positive performance in both the leasing and
transaction market in 2011. Take-up in the Bavarian capital was
the highest of the five German office markets during the first
nine months of the year, and vacancy rates decreased from 8.5
percent to 8.3 percent over the course of 2011.
Residential assets are the third most attractive in Europe,
after Berlin and London, another sign of investors’ desire for
safe, stable cash flow within portfolios. Munich’s retail property
was the second most attractive in Europe, following from
a major investment in a large-scale mall from a major U.S.
pension fund last year.
But observers have warned of bubble-like pricing as a
result of strong interest for German assets in 2012. “Large
equity institutional investors are now increasingly interested
in direct investment. The run on quality and refuge cities has
made German cities almost bubble-like. We sold an asset at
a yield that has exceeded all of our optimistic expectations
and at a very large margin. At these prices, we would sell our
entire portfolio in Germany.”
Chapter 3: Markets and Sectors to Watch
O f fi ce Retail Industrial Apartment Hotel
Best Sector for
Acquisition in the City
Amsterdam 17 19 8 14 10 Retail
Athens 5 12 3 9 17 Hotel
Barcelona 28 33 9 13 12 Retail
Berlin 43 42 7 58 12 Apartment
Brussels 14 16 4 6 2 Retail
Budapest 13 16 9 1 2 Retail
Copenhagen 14 18 3 13 3 Retail
Dublin 14 4 2 7 3 Offi ce
Edinburgh 15 7 2 3 5 Offi ce
Frankfurt 47 30 13 32 3 Offi ce
Hamburg 43 35 18 43 6 Offi ce, Apartment
Helsinki 17 17 5 5 1 Offi ce, Retail
Istanbul 26 34 8 20 20 Retail
Lisbon 13 10 4 7 8 Offi ce
London 74 36 14 51 24 Offi ce
Lyon 20 13 13 5 3 Offi ce
Madrid 37 31 6 15 14 Offi ce
Milan 25 37 6 10 6 Retail
Moscow 16 21 7 8 5 Retail
Munich 62 49 10 44 16 Offi ce
Paris 81 52 11 25 18 Offi ce
Prague 28 22 5 1 4 Offi ce
Rome 14 29 1 9 6 Retail
Stockholm 24 26 7 15 3 Retail
Vienna 14 13 4 17 3 Apartment
Warsaw 42 37 9 8 6 Offi ce
Zurich 12 10 1 6 0 Offi ce
ExHIBIT 3-7
Munich
Source: Emerging Trends in Real Estate Europe 2012 survey.
Prospects Rating Ranking
Existing Property Performance Good 3.77 2
New Property Acquisitions Good 3.60 3
Development Prospects Fair 3.36 5
Investment Prospects
excellent
good
fair
poor
abysmal
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