According to a new report, the commercial real estate industry accounts for 2.5% of the European economy, more than the banking, telecommunications and automotive industries. The report, commissioned by the European Association for Investors in Non-listed Real Estate Vehicles (INREV) and the European Public Real Estate Association (EPRA) is the first accurate measure of the specific contribution commercial real estate makes to the wider economy.
National economic reports are of course more detailed when it comes to individual economies, however, when it comes to real estate's contribution it is usually all clumped together. For example in the UK real estate statistics include all economic activity related to the construction and sale of owner-occupied residential property.
From these reports it is concluded that all real estate accounts for 20% of European economic activity, but again there is nothing to detail exactly how this is broken down into sectors. But that can no longer be said of commercial real estate; the new report, titled Real Estate in the Real Economy focuses entirely on activity in the commercial sector including retail, offices, non owner-occupied residential, and warehousing and industrial.
According to the new study commercial property in Europe generated 285 billion Euros in 2011, and employs over 4 million people.
The independent report, entitled, Real Estate in the Real Economy, was designed to help national governments across Europe, officials in the European Commission and Members of the European Parliament better understand the scale and importance of the industry in supporting growth, jobs and sustainability. It provides a useful Europe-wide perspective on the sector, for the first time. Historically, data relating to the economic significance of the commercial real estate sector has only been collected at a national level, and often in an inconsistent manner.
"This report provides a very useful snapshot and reference point. We've long needed comprehensive, independent data that demonstrate the hugely positive impact that commercial real estate has on the national economies and individual lives of people around Europe," said Jeff Rupp, Director, Public Affairs, INREV.
- Friday 14 September 2012