Commercial real estate: the trends of 2019

Among the various segments belonging to the real estate market, the one that takes on greater importance after the residential sector is the commercial one.
But despite the fact that there is a "very high demand for new buildings for commercial purposes and despite the fact that the economy is recovering after years of crisis, the commercial is experiencing a phase of stalemate.

We are talking about investments that continue to record a decline of 45 billion in the last year.
But let's get to the heart of this issue. Today, in fact, we have decided to analyze this circumstance in the best way, to fully understand the dynamics and try to hypothesize possible future forecasts.
So, if you are ready, we can open our article!

We start from the assumption that, compared to other categories of the real estate sector, retail investments offer particular stimuli for buyers. We do not speak only and exclusively of the sale of the property itself, but of the opportunities in economic terms of income. It is therefore easy to understand how this segment is important to a good percentage of investors. So why are investments falling? We see the European situation.
The investment, in general, in non-residential real estate, in Europe, has reached 256 billion euros in the last year. The main target is that of offices, while retail has reached - 25% (about 41 billion less) than the previous year. And the share for commercial investments? From 21% to 15%.

There is therefore great uncertainty on the part of investors. But let's now take a closer look at the picture of the main European realities.

• Germany is the most important economic driver in the sector. Despite this, even in this case, there has been a 31% drop in the last 12 months.
• The United Kingdom, on the other hand, suffered a slight slowdown of 34%
• The situation in France is different, where after a rather tiring start, everything was established.
• Strangely, on the other hand, the investments that had recorded very high levels in 2018, in 2019, collapsed in Spain and Poland.

After having noticed that, in general, the market destined for trade has noticeably collapsed, we can see however which are the most popular areas in the various European countries.

As for Spain, the Gran Via in Madrid is the most sought after location by international retailers
The famous Avenue des Champs-Elysées in Paris continues to emerge thanks to the recent opening of new flagship stores
Slovenia Poland and the Czech Republic are looking forward to new clothing brands in the Warsaw and Prague areas respectively.

What to say, the situation seems quite varied. While we cannot state with certainty what the next trends will be. What we can guarantee is that we will keep you up to date on our portal. Whether they are advice on the real estate market or specific reports on a specific topic, the solution will always be unique: Realigro!

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