Capital Views - EMEA Retail Investment Trends

David Hutchings

International Partner

Phone +44 207 152 5029

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  • Retail was the fastest growing sector of the commercial property market in Europe last year, with volumes rising to a total of €67.3bn, the second largest annual total on record.
  • A spreading of demand to new markets was a major feature of the year but the strongest driver was actually Germany, which saw a doubling in trading volumes to move past the UK to become the busiest retail investment market in Europe.
  • Within the retail market, larger assets and portfolios have driven volumes higher, aided by a stronger finance market, with shopping centres the key contributor but interest in retail warehousing and high street shops also strong.
  • Levels of investment supply are now improving but shortages of quality space will continue to drive pricing and encourage further diversification into new markets led by southern and central Europe.
  • Core markets however will remain in highest demand in what looks set to be an uncertain and volatile global economy, with Germany and the Nordics set to post a new high, underpinning a 5% growth forecast for retail volumes across the region overall in 2016.