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BNP Paribas REIM presents “The Lighthouse H2 2024 – European Property Market Outlook”, its outlook for the European real estate market using its in-house forecasts, analysis, and the expertise of its local teams. In this nineth edition, BNP Paribas REIM defines its convictions and provides the investment strategies to adopt considering the expected macroeconomic and financial environment for the rest of 2024 and beyond.

BNP Paribas REIM has made three new appointments with effect from July 1, 2024:

• Vincenzo Nocerino is to be made Global Chief Investment Officer,
• Laurence Weydert will become Global Head of Asset Management,
• Swati Srivastava will become Country Head UK.

Although the office sector saw the steepest fall in investment of any asset category in 2023, the market is gradually recovering, underpinned by a consolidation in take-up, a stable vacancy rate and rising prime rents.

The European Impact Property Fund (EIPF) has seen inflows of almost € 378m from European institutional investors and has acquired 10 assets in Europe since its inception in 2020. As per the requirements of article 9 of the Sustainable Finance Disclosure Regulation, the EIPF has demanding environmental targets. It is also seeking to diversify and continues to acquire assets in Europe.

Investment in European retail fell 40% in 2023 vs 2022, to € 26.2bn. Yet investor interest in retail assets is slowly gaining more traction in terms of investment market share (20% in Q4 23 vs 16% in Q4 22). “This level has not been seen for five years (20% in 2018). As a result, retail was the second least affected sector after hotels”, says Patrick Delcol, Head of European Retail at BNP Paribas Real Estate.

The slowdown in rental activity seen from late 2022 in some European markets then spread and was confirmed in 2023. This was due to the uncertain economic and geopolitical context and structural changes in the way offices are used. All told, take-up for the year came to 7.6 million sqm across the 17 main European markets*, down 19% vs 2022. This was 16% lower than the long-term average.

In this eighth edition, “The Lighthouse H1 2024 – European Property Market Outlook”, BNP Paribas REIM presents its outlook for the European real estate market using its in-house forecasts, analysis and the expertise of its local teams. Here BNP Paribas REIM defines its convictions and investment opportunities for the beginning of 2024 and beyond.

For many years, BNPPRE BELGIUM has been supporting major socio-economic changes to offer increasingly innovative property management, focused on UX and closely aligned with the expectations of investors and institutions who wish to enhance their assets. In 2023, and thanks to its comprehensive range of services for owners and users of tertiary and residential buildings, the group is strengthening its position as the leader in the sector with 3,813,953 m2 under management.