In the Euro area, economic conditions deteriorated in the last quarter of 2011. Indeed, following the slight 0.2% GDP growth recorded in Q3 2011, the Euro area is expected to enter a short period of recession which may last through the first half of 2012. Germany should remain the strongest Euro area performer, despite a sharp slowdown in economic activity, whilst Italy and Spain are headed back into recession. In the labour market, the Euro area unemployment rate is expected to rise further during 2012 and is likely to impact on office demand.
In the 9 primary Western European office markets, take-up in Q4 2011 dropped slightly on a rolling year basis compared to Q3 2011. German cities were by far the most active ones, recording strong dema...[…]