EU seeks to boost competitiveness amid worsening housing crisis
GRI Club Europe
High-level content and networking, shaping the present and future of the real estate market
The European Commission (EC) has introduced a series of proposals to reduce bureaucratic hurdles and improve the EU's competitiveness against the US and China, particularly in sustainability reporting and supply chain transparency.?
?? Aimed at saving EUR 40 billion for European businesses by 2025, the package also includes measures to support energy-intensive industries and decarbonisation efforts.?
Meanwhile, the EC's proposed energy plan seeks to cut the EU's fossil fuel import bill by up to EUR 45 billion in 2025 and EUR 130 billion annually by 2030 through measures focused on renewable energy, energy efficiency, and tariff adjustments.
?? European Central Bank (ECB) board members Isabel Schnabel and Joachim Nagel both indicate that the current interest rate of 2.75% is no longer a significant constraint on growth, and that further interest rate cuts could be possible if inflation continues to subside in line with targets.?
European & UK stocks saw modest gains this week, with the pan-European Stoxx 600 rising by 0.15% and the FTSE 100 hitting a one-week high on Wednesday (26th), despite concerns over US President Donald Trump’s announced plans for a 25% tariffs on EU goods and weaker consumer confidence.
?? In response to mounting defence needs following the concurrent reduction in US military support, European investors anticipate joint EU borrowing to fund increased defence spending, with the potential to raise EUR 625 billion by 2030.
At the same time, the EU’s real estate market faces a worsening housing crisis, with house prices increasing by 48% in under a decade, prompting the European Parliament to create a new committee to tackle the issue.?
?? Irene Tinagli, chair of the committee, advocates for a comprehensive approach, including renovating old buildings and increasing sustainable housing funding, while stressing the importance of political cooperation.?
The crisis, driven by factors such as tourism, migration, and low housing supply, is disproportionately affecting low-income earners, with some cities, including Lisbon and Budapest, facing rents that consume over 80% of a median wage.
?? In response, the mayors of twelve major European cities, including Rome, Paris, Barcelona, and Madrid, have called for the EU to take urgent action on the situation by activating the safeguard clause of the Stability Pact to unlock more resources for housing investment.
Overcoming the shortage of affordable homes was the central topic of two recent GRI Club Meetings in Portugal and Spain, where industry leaders discussed solutions to the challenges facing the two countries.
?? In Portugal, the crisis stems from factors such as a strong homeownership culture, high construction costs, and tourism-driven inflation, while Spain is hampered by a significant supply-demand imbalance, restrictive land access, and slow permitting processes.
Look out for a full assessment of affordable housing in the Iberian region, coming soon to the GRI Hub.
And for more insights into this situation, as well as cross-border opportunities with Latin American investors who are showing increased interest in European real estate, don’t miss out on Ibero-American GRI 2025, where leading decision-makers from both sides of the Atlantic will gather to unlock dealflow between these evolving markets.
Examining the rise of hybrid real estate models with Deepki
With significant vacancy rates in office buildings continuing to affect European markets, GRI Club is pleased to be sharing Deepki’s article on the evolving trend of hybrid real estate models, highlighting their importance in reshaping urban spaces.?
?? Exacerbated by the rise of remote work, many cities are turning to adaptive reuse strategies to address both housing shortages and sustainability goals.?
Deepki discusses how vacant offices can be converted into housing, student residences, data centres, or hotels, offering solutions to multiple urban challenges. This shift towards hybrid spaces is not only about maximizing the use of existing buildings but also aligns with the growing push for sustainability in the real estate sector.?
?? However, challenges such as zoning laws, financing complexities, and regulatory barriers remain, requiring careful planning and collaboration.?
Despite these hurdles, the move towards hybrid real estate offers a promising way for cities and investors to adapt to shifting market dynamics and evolving demands.
Climate X on outdated risk models and anticipation vs reaction
In a world facing the increasingly intense impacts of climate change, traditional risk models are becoming obsolete, and asset managers must shift their approach to managing long-term risks.?
?? GRI Club proudly shares Climate X’s latest insights highlighting the rising frequency of "1-in-100-year" events, such as floods, and the importance of anticipating these risks before they affect portfolios.?
The UK’s National Flood Risk Assessment’s updated risk profile has seen many assets reclassified as high risk, with potential value drops of up to 30%, not necessarily due to an actual event, but from the perception of risk alone.?
With climate-related risks becoming an inevitability, managing them proactively is key to securing long-term, stable returns in real estate.
Experience the Miami Open Tennis Tournament with GRI Club
The first major date in the recently launched GRI Experiences series is coming soon!
Join us at the prestigious Miami Open Tennis Tournament, an unmissable event for sports enthusiasts and business leaders alike, where some of the sport's greatest champions, including Novak Djokovic, Roger Federer, Pete Sampras, Andre Agassi, Andy Murray, Carlos Alcaraz and Jannik Sinner, have claimed historic titles.?
Set in the vibrant city of Miami, this tournament offers a unique opportunity for networking and entertainment amidst the excitement of world-class tennis.?
As part of the GRI Club's ongoing commitment to connecting top-tier professionals, this event will provide an exclusive setting for forging new connections, discussing the latest market trends, and enjoying high-level sporting action.?
Places are limited, so don’t miss the chance to attend one of the most anticipated events of the year.
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Transformational Leader & Strategic Advisor
2 天前New IMF analysis across 40 countries over the past 50 years shows that the pandemic and rising inflation triggered the worst housing affordability crisis in over a decade.? More and better supply is crucial. While targeted VAT reductions may help in many countries, the real opportunity may lie in long-overdue structural reforms. See latest IMF analysis / Draghi report on intro EU hurdles and impact vs likely US tariffs.? Extremely low productivity in construction sector does not help and will not improve over night but needs attention. Mind the risk of crowding out (large public infra works, eg net zero, competing with housing for limited skilled labour force). https://www.dhirubhai.net/posts/cprees_%F0%9D%97%99%F0%9D%97%B6%F0%9D%98%83%F0%9D%97%B2-%F0%9D%97%95%F0%9D%97%B2%F0%9D%97%B3%F0%9D%97%BC%F0%9D%97%BF%F0%9D%97%B2-%F0%9D%97%A7%F0%9D%98%84%F0%9D%97%B2%F0%9D%97%B9%F0%9D%98%83%F0%9D%97%B2-%F0%9D%97%AA%F0%9D%97%B6%F0%9D%97%B9%F0%9D%97%B9-activity-7293666602581950464-CeIM?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAKbG6kBnB_5mTzRTAUYJgjhN9tBOkCWr-M