European investment volumes in 2015 could exceed €230 bln record after buoyant Q1 (EU)

European commercial real estate investment totaled €51.4 bln in the first quarter of 2015, a 40% increase on a year ago, according to a DTZ report. Following a strong final quarter in 2014, in which €71 bln was invested, the latest figures mean volumes over the last 12 months climbed to €208 bln. This is the first time since 2007 that the €200 bln mark has been exceeded in a 12 month period.
DTZ’s Investment Market Update for Europe reveals dynamic investment across the continent in Q1, with investors increasingly looking beyond the core markets.
Magali Marton, Head of EMEA Research at DTZ, says: “Investment activity in Q1 was dynamic and shows a changing landscape. While the UK and France saw 36% and 34% volume growth compared with a year ago, Germany’s €9 bln of transactions was stable and the real story was elsewhere thanks to increasing varity in investment destinations.
“Spain and Italy continue to welcome massive capital flows, resulting in triple digit growth, while Benelux and the Nordics posted 93% and 48% increases in volume. As a result the core three markets of the UK, France and Germany now represent 65% of activity, down from 74% a year ago and in line with long-term trends.”
Offices continued to drive investment activity across Europe with 39% of market share, although this was its lowest share since 2011. The retail segment has shined with volumes reaching a record quarterly level of €18 bln in Q1 2015 driven by pan-European shopping center portfolio sales.
Source: DTZ