As we all know times have been tough and brokerage companies around the world have made cuts in staff, salaries and closed offices as circumstances have dictated. As far as investment transactions were concerned, the brokers interviewed by Property EU stated that €52 billion of investment transactions was generated – a 38% decline from the previous year. The previous year saw a decline of 60%. CBRE noted a decline of 5% year on year with Catella and Colliers – 82% and 78% respectively.
So what now? The markets remain difficult across Europe but the first half of 2010 saw a doubling of transactions. The UK followed by Paris and Germany have seen the most growth. Due to this the brokerage companies have assessed other existing or potential income flows – particularly corporate services and property management. Another growth market is the energy and sustainability sector. Legislation and green issues have led to demand for advice across Europe.
The large businesses such as DTZ are returning to the black and are looking to recruit staff again with a modest pre tax profit of €4.7 million in 2009/10.
The main markets cited to grow teams are France and Germany in areas such as valuation and property management. Companies such as Savills, DTZ and King Sturge cite these locations as their priority growth areas.
Other areas seeing recovery are Poland and the Scandinavian countries.
NAI Global’s network has also been expanding and growing with new offices recently added in the Netherlands, Belgium, new French partner and Poland in 2010.
We will see what impacts the various austerity measures in the public sectors in Europe have on the markets and the economic impacts. Let’s hope the firms continue to grow with more specialist services available to fulfil clients’ needs.
-Patricia LeMarechal, BSc, MRICS, SIOR
Based in the UK, Patricia LeMarechal is Vice President of International Client Development for NAI Global and a member of the International Advisory Council of The Society of Industrial and Office Realtors (SIOR).
