The European real estate industry
will be forced to adapt to tougher regulations, harsh spending cuts from governments and a tight lending environment, the latest report from PricewaterhouseCoopers (PwC) has claimed.
According to the firm's Emerging Trends in Real Estate 2011, this year will not feature the big turnaround that many have been predicting.
Instead, PwC forecast that there will be an emergence of a two-tier market in Europe which will reflect a widening gap between investment hotspots and second-tier property markets.
John Forbes, partner at PwC and one of the report’s authors, said: "In future years we may look back on 2011 as a transformational year for the property industry. Real estate professionals face a challenging time. Traditional sources of debt
, for refinancing properties with vacancies or in need of refurbishment, will not be available."
Meanwhile, the company added that a large theme in the European real estate market will be the continued downsizing of the industry, with the biggest winners being those who are best able to manage their assets.
- Monday 07 February 2011