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Over 2017 European market rental growth improved in many core markets. Net effective rents rose nearly 3% in 2017, a slight improvement over 2016. The geographic drivers of growth are also shifting. Continental EU improved considerably, with rental rates rising 3%, up from less than 2% in 2016.
Although Northern European markets led the acceleration, many Southern and Central European markets improved as well. By contrast, growth remained positive but slowed in the UK, where rents rose between two and three percent on a net effective basis.
With the current market conditions as they are the outlook for 2018 points towards further acceleration. The main insights can be found in the market snapshots below.