Emerging Trends in Real Estate® Europe 2023
In the Eye of the Storm
Report Summary: : The outbreak of war in Ukraine has cast a long shadow over Europe, and real estate, like every other industry, will have to deal with the economic and political fallout for the foreseeable future.
While the industry leaders canvassed for this 20th edition of Emerging Trends in Real Estate® Europe 2023 report little direct impact on their property portfolios from Russia’s invasion of Ukraine, the war’s consequences are seen in surging energy costs, historically high inflation and, latterly, rising interest rates. Seven out of 10 survey respondents believe Europe will move into recession before the end of 2022.
The mood is in stark contrast to last year’s report when there was still a COVID-inspired solidarity among European countries as well as a coming-out-of-lockdown peak in business sentiment. Europe now appears far more unsettled by the pressures of energy supply and internal politics, which is adding to the overall uncertainty for investors. Much depends on the severity and duration of the expected recession, and as interviewees point out, the economic circumstances and market conditions behind previous downturns are all quite different from what Europe is experiencing today.
City Prospects
Though the city rankings have a familiar look — London retains the top spot while Paris takes over second place from Berlin — the overall investment and development prospects for all 30 cities covered by Emerging Trends Europe have declined since last year’s survey.
Even investors’ other customary safe havens in Germany, Frankfurt, Munich and Hamburg, do not enjoy the same unwavering positive sentiment as previous years, reflecting the potential impact of inflation on Europe’s largest economy and its dependency on Russian gas supplies.
20 Years of Emerging Trends
To mark 20 years of Emerging Trends Europe we have asked a broad range of industry players to explore such themes and how they may define real estate over the next 20 years while reflecting on the many market changes that have shaped the industry to date.
The industry’s move towards a form of “responsible capitalism” over the next 20 years is driven by many factors but above all by the climate crisis. It is one trend that has only gained in prominence and relevance throughout Emerging Trends Europe’s history, connecting the past, present and future.
Watch the launch webinar here: ULI Europe and PwC Emerging Trends® 2023 Report Launch
Report Summary: The outbreak of war in Ukraine has cast a long shadow over Europe, and real estate, like every other industry, will have to deal with the economic and political fallout for the foreseeable future.
While the industry leaders canvassed for this 20th edition of Emerging Trends in Real Estate® Europe 2023 report little direct impact on their property portfolios from Russia’s invasion of Ukraine, the war’s consequences are seen in surging energy costs, historically high inflation and, latterly, rising interest rates. Seven out of 10 survey respondents believe Europe will move into recession before the end of 2022.
The mood is in stark contrast to last year’s report when there was still a COVID-inspired solidarity among European countries as well as a coming-out-of-lockdown peak in business sentiment. Europe now appears far more unsettled by the pressures of energy supply and internal politics, which is adding to the overall uncertainty for investors. Much depends on the severity and duration of the expected recession, and as interviewees point out, the economic circumstances and market conditions behind previous downturns are all quite different from what Europe is experiencing today.
City Prospects
Though the city rankings have a familiar look — London retains the top spot while Paris takes over second place from Berlin — the overall investment and development prospects for all 30 cities covered by Emerging Trends Europe have declined since last year’s survey.
Even investors’ other customary safe havens in Germany, Frankfurt, Munich and Hamburg, do not enjoy the same unwavering positive sentiment as previous years, reflecting the potential impact of inflation on Europe’s largest economy and its dependency on Russian gas supplies.
20 Years of Emerging Trends
To mark 20 years of Emerging Trends Europe we have asked a broad range of industry players to explore such themes and how they may define real estate over the next 20 years while reflecting on the many market changes that have shaped the industry to date.
The industry’s move towards a form of “responsible capitalism” over the next 20 years is driven by many factors but above all by the climate crisis. It is one trend that has only gained in prominence and relevance throughout Emerging Trends Europe’s history, connecting the past, present and future.
Watch the launch webinar here: ULI Europe and PwC Emerging Trends® 2023 Report Launch
About Emerging Trends in Real Estate®
Emerging Trends in Real Estate® is one of the most highly regarded annual industry outlooks for the real estate and land use industry, published jointly by PwC and the Urban Land Institute. By incorporating interviews and survey responses from several hundred industry professionals, the report provides an in-depth outlook by region on real estate investment, development trends, and capital markets. The report is produced in four versions: Americas, Asia Pacific, Europe, and Global. All the Emerging Trends in Real Estate® reports published since 2003 are available on Knowledge Finder.
ULI & PWC
Emerging Trends in Real Estate® is jointly sponsored by the Urban Land Institute and PwC. Since 2003, the Urban Land Institute and PwC have collaborated to produce one of the most comprehensive real estate and land use industry reports. PwC is a global network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory, and tax services. Find out more about PwC at pwc.com.

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ULI Europe and PwC Emerging Trends in Real Estate 2023 Webinar 20 years of Emerging Trends
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