Luxembourg

Details

  • Type: Press release
  • Date: 11/21/2012

Real Estate exposure in a Prime Time property season 

The Eurozone-Crisis and the uncertainty over global economic development are currently depressing the economic segments that drive both the real estate investment and tenancy markets and there are regulatory factors that lead to a shift in capital availability.

Regardless of wether a market is considered a safe haven or belongs to the peripheral or emerging regions, the transformation of the financial sector takes its toll on the real estate market.

 

The reduction in the labour force of financial institutions does not only lead to a decrease in office space requirements, but also affects purchasing power and the related demand for retail space.

 

Uncertainty over economic development and increasing unemployment rates in some regions is causing a shift in the demande for the quality of residential space.

 

On top of this, new regulations for the financing of real estate limit the availability of funds for real estate investments from traditional lenders.

 

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