In our 2017 Hotspots report, we used our market insights to identify 10 European office submarkets that would outperform thanks to solid property fundamentals, strong occupier demand and a catalyst which differentiated the market to drive solid rental growth. With average rental growth of over 7.2% y-o-y in 2017, versus the market average of 4.1%, our predictions were on track.
These growth drivers remain relevant and should underpin future rental growth in these submarkets but with continuing record pricing in European investment markets, searching for income driven returns and rental growth remains challenging. To further help investors we have now put the spotlight on market supply, as with a modest European development pipeline, office supply levels are certain to be a key factor in driving rental growth.
Our new Office Supply Sensitivity (SSI) Index is a forward looking indicator identifying office (supply-led) hotspots where we can see potential future rental outperformance. To see some of the SSI metrics that we have developed and our top line results, register here for our latest Office Hotspots report.
For the full results and how these complement traditional forecasts and can be tailored to your own investment strategies, please contact us for a presentation.