European retail investment at 2006 highs
Investors splurged €15.5bn (£12.7bn) on European retail assets in the fourth quarter of last year – the highest quarterly total since the same time in 2006 and almost double the amount spent in the third quarter.
According to the latest research from property advisors CBRE, 2013 was by far the strongest year for retail investment in Europe since 2007 with €41.3bn changing hands, compared to €34.3bn in 2012 – a 20.4 per cent increase.
The type of investors piling into Europe broadened in terms of nationality, with North American, Asian and Middle Eastern capital increasingly active across the retail market.
Countries worst affected by the Eurozone crisis bounced back in the fourth quarter, with the Iberian peninsular enjoying the strongest growth in retail investment – up 129 per cent in 2013.
However mature markets like Germany suffered a decline or little change in retail investment, with the UK one of the few mature markets to see a significant increase in 2013.
John Welham, CBRE’s head of EMEA retail investment, said:
Early autumn 2013 saw the first major wave of investors looking beyond core-assets in major markets and toward non-core opportunities. This trend accelerated in the last quarter, exceeding expectations in many markets, including those most affected by the eurozone crisis such as Spain, Italy and Ireland.The most significant push factors behind this trend continue to be relative pricing, with investors increasingly looking for better yields, and constrained product availability at the core end of the market.