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The European recovery has presented a rare source of upside over recent quarters. Low interest rates, reviving domestic demand and job creation continue to underpin occupier activity, though growth rates are expected to dip slightly this year and next. German growth is set to trend moderately slower after peaking in 2017, though France sees further gradual improvement. Brexit casts a shadow over UK performance, although the slowdown has been relatively mild to date. While we expect 2018 to pose a number of challenges, we forecast demand for offices to remain strong and rental growth to continue to outpace the long-term average.
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17 April 2018