In the first half of 2013 the total commercial investment volume in our survey area was close to €50 bln, about 3% higher compared to the same period last year. Investment activity in the peripheral markets increased by 19% pa compared to 2% pa increase in the core markets.
The top 3 markets of UK, Germany and France once again accounted for 76% of the total investment volume of the 12 countries surveyed.
The improved investment activity that was evident in the peripheral markets was supported by cross border investor demand, accounting for about 60% of the total volume in this region in H1 13.
The majority of investors are still chasing prime opportunities across all market segments. The scarcity of prime shopping centres has led to reduced retail volumes (-11% pa) across our study area in the first half of 2013. Industrial investments increased by 22% pa.
The prime yield differential between core and peripheral markets has started narrowing mainly led by yield compression in Ireland. The average yield in our area is at 5.3% for prime CBD offices, at 5.9% for prime shopping centers and at 7.5% for prime logistics sheds.
(This article features excerpts from the full report – please download it here)