European Real SnapShot! Autumn 2015

European Real SnapShot! Autumn 2015

The European real estate snapshot covers developments in Europe’s key real estate markets.

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European Real SnapShot Autumn 2015

Europe’s property investments remain popular

For the first half of 2015, European property transactions increased 37 percent year over year.1 Demand for European investment properties is being driven by international investors who have been responsible for 54 percent of total investments. This is the first time since 2007, that these investors have accounted for more than half of all transactions by volume. 

Office properties account for 37 percent of total investments in the first half of 2015, followed by investments in retail premises, at 26 percent. Residential properties ranked third, with a 16 percent share of total investments. Year over year, there were increases in all real estate categories. 

Twelve markets are covered

Details provided on the office, retail, residential and infrastructure markets

The report looks at the office, residential and retail markets in Germany, United Kingdom, the Nordic region, the Netherlands, Belgium, Luxembourg, France, Switzerland, Italy, Spain, Switzerland and Russia. And new for this issue, is a look at the deals in the infrastructure market.

The UK remains the most important market in Europe, with transaction volume concentrated on the London area. 2015 was expected to have been a record year.  London remains by far the most important investment destination for international investors and is outperforming Manhattan. 

In Germany, residential and retail transactions volumes set new records. Germany is the largest market for residential property investment in Europe.

Positive results seen in key markets

UK, Germany, Luxembourg, Belgium, Spain, Italy and CEE

In addition, to the UK and Germany the following markets performed well.

  • The Belgium market had strong interest in the investment market from international real estate players.
  • Luxembourg saw strengthening investor appetite as well.
  • In Spain, appetite has increased. This real estate market was the fourth most active country for transactions.
  • Italy is starting to emerge from the downturn and saw an increase in transactions.
  • And in the central and eastern Europe (CEE), real estate markets were strengthening due to improving economic activity.

Results in other markets varied

The Nordic region, which includes Norway, Sweden, Finland and Denmark, was stable.  While the Netherlands saw rising investment volumes, this market also experienced yield compression. 

In France, the office building take-up in the first half of 2015 was disappointing. Investment activity dropped 17 percent. In Switzerland, the scraping of the exchange rate mechanism has divided the real estate investment market.  Russia was dealing with a faltering economy.  

Footnote:

1RCA European Capital Tre

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