The commercial property market is responsible for contributing 2.5 per cent to the European economy. This may not seem like a significant amount, but it adds up to more than the automotive, banking, and telecommunications industries according to the results of a research study released by the European Association for Investors in Non-listed Real Estate Vehicles (INREV) and the European Public Real Estate Association (EPRA).
Other studies have revealed that all forms of commercial properties combined, account for approximately 20 per cent of all economic activity in Europe. The commercial sector generated €285 billion (£230 billion) for the economy in 2011 and was responsible for employing over four million people.
The report, called “Real Estate in the Real Economy,” was prepared to help European governments and its members of parliament understand the importance of this industry and its role in supporting the economy. The information provides a continental overview for the first time. Up to this point, data about the commercial real estate sector as it relates to the economy had only been gathered at a national level, and it may not have been consistent.
This report focuses specifically on commercial property activity, which includes offices, retail space, warehouses, industrial, and non-owner occupied residential units. As a result, there is a way to more accurately measure the contribution this market makes to the economy.
Jeff Rupp, the Director of Public Affairs for INREV said, “This report provides a very useful snapshot and reference point. We’ve long needed comprehensive, independent data that demonstrate the hugely positive impact that commercial real estate has on the national economies and individual lives of people around Europe.”
Gareth Lewis, EPRA’s finance director, added, “We can see clearly from this report that our industry is an economic powerhouse delivering jobs and economic growth through the ownership, management and delivery of the built environment.”
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