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A descriptive analysis of five forces model, market dynamics, and segmentation- Technavio


NEW YORK, Jan. 17, 2023 /PRNewswire/ — According to Technavio, the Europe commercial real estate market size is estimated to grow by USD 80.59 billion from 2022 to 2027. The market is estimated to grow at a CAGR of 5.55% during the forecast period. Moreover, the growth momentum will accelerate.

Technavio has announced its latest market research report titled Europe Commercial Real Estate Market 2023-2027

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Commercial real estate market in Europe – Five forces
The commercial real estate market in Europe is fragmented, and the five forces analysis covers –

  • Bargaining power of buyers

  • The threat of new entrants

  • Threat of rivalry

  • Bargaining power of suppliers

  • Threat of substitutes

  • For interpretation of Porter’s five forces model – buy the report!

Commercial real estate market in Europe – Customer landscape 

The report includes the market’s adoption lifecycle, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Commercial real estate market in Europe – Segmentation assessment

Segment overview
Technavio has segmented the market based on end-user (offices, retail, leisure, and others) and type (rental, lease, and sales).

  • The offices segment will grow at a significant rate during the forecast period. Office account for 35% of all new jobs created across the world, which will facilitate market growth during the forecast period. Moreover, the demand for office space is expected to increase with the economic expansion and the employment situation. Thus, the growth of the office sector is expected to fuel the demand for commercial real estate in Europe.

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Commercial real estate market in Europe – Market dynamics
Key factor driving market growth

  • The growing aggregate private investment is driving the market growth.

  • Aggregate private sector investment refers to the investment by individuals and firms in tangible assets such as land, commercial buildings, and commercial offices.

  • Investments in business sectors such as land, offices, and other physical structures account for the largest share of total private investment.

  • Most corporate investment is in hardware and software, with the rest spent on physical structures such as buildings, land, and business offices.

  • Growing investments in industries have increased the demand for commercial real estate consulting services that help investors in planning strategies and investments.

  • Thus, with growth in industrialization, a significant rise in the total investments of private companies is expected, which will fuel the growth of the commercial real estate market in Europe during the forecast period.

Leading trends influencing the market 

  • Increasing investments in the commercial real estate market in Europe is a key trend in the market.

  • For instance, 23% of companies in Germany plan to increase investments.

  • In the UK, 82% of investors plan to grow their international business

  • In addition, in France, 64% of real estate experts intend to increase their international investments.

  • Similarly, in Spain, 42% of investors intend to become more active internationally.

  • These factors are expected to support market growth during the forecast period.

Major challenges hindering market growth

  • Increasing interest rates are challenging the market growth.

  • Some of the biggest lenders in Europe are dealing with the increasing defaults on commercial real estate.

  • The demand for space in many commercial properties is expected to decrease, which could lower rents.

  • Moreover, the recent sharp increase in interest rates in Europe is driving the cost of debt for landlords.

  • A significant decline in commercial property values can violate the debt covenants included in bank leases, which could potentially lead lenders to foreclose on distressed properties.

  • These factors will impede market growth during the forecast period.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find some insights from a sample report!

What are the key data covered in this Europe commercial real estate market report?

  • CAGR of the market during the forecast period

  • Detailed information on factors that will drive the growth of the commercial real estate market in Europe between 2023 and 2027

  • Precise estimation of the size of the commercial real estate market in Europe and its contribution to the parent market

  • Accurate predictions about upcoming trends and changes in consumer behavior

  • A thorough analysis of the market’s competitive landscape and detailed information about vendors

  • Comprehensive analysis of factors that will challenge the growth of Europe commercial real estate market vendors

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Related Reports:

The residential real estate market is estimated to grow at a CAGR of 5.07% between 2022 and 2027. The size of the market is forecasted to increase by USD 514.41 billion. This report extensively covers market segmentation by mode of booking (sales and rental/lease), type (apartments, condominiums, landed houses, and villas), and geography (APAC, North America, Europe, South America, and Middle East and Africa).

The commercial real estate market is estimated to grow at a CAGR of 3.3% between 2022 and 2027. The size of the market is forecasted to increase by USD 260.37 billion. This report extensively covers market segmentation by end-user (offices, retail, leisure, and others) and geography (APAC, North America, Europe, Middle East and Africa, and South America).

Europe Commercial Real Estate Market Scope

Report Coverage

Details

Page number

141

Base year

2022

Historic period

2017-2021

Forecast period

2023-2027

Growth momentum & CAGR

Accelerate at a CAGR of 5.55%

Market growth 2023-2027

USD 80.59 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

5.0

Key countries

Germany, UK, France, Italy, and Rest of Europe

Competitive landscape

Leading vendors, market positioning of vendors, competitive strategies, and industry risks

Key companies profiled

AG Real Estate, Aroundtown SA, Blackstone Inc., BNP Paribas, Covivio, CPI Property Group, Deutsche WohnenDeutsche Wohnen SE, Fastighets AB Baider, Futureal Management Szolgaltato Kft., HB Reavis Group, Jones Lang LaSalle IP, Inc., LEG Immobilien SE, Longfor Group Holdings Ltd., MITSUBISHI ESTATE Co., Ltd., REA group Ltd., Segro Plc, Skanska, STRABAG SE, Tishman Speyer, and Hines

Market dynamics

Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Browse for Technavio’s consumer discretionary market reports

Table of contents

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by End-user

7 Market Segmentation by Type

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Europe Commercial Real Estate Market 2023-2027

Europe Commercial Real Estate Market 2023-2027

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