Total European Real Estate Volumes Grew By 30 Per Cent to €129 billion

Offices were the most traded sector at €45 billion, but retail saw the largest increase (+57 per cent to €38 billion)

LONDON, July 22, 2015 – Cross-Border capital investment throughout European real estate increased by 30 per cent during the first half of 2015, to €129 billion compared to the first half of 2014, according to Colliers International research published this week.

Offices were the most traded at €43 billion; but retail was the fastest growing (+57 per cent to €38 billion) commercial sector, reflecting the consolidation within the shopping centres listed industry.

Richard Divall, Colliers International EMEA Head of Cross Border Capital Markets, commented: “These results, coupled with the new capital sources targeting Europe, ultra-low rates and the continuing monetary stimulus all point to yet another strong year for European property.

“Transactions suggest cross-border capital continues to move up the risk curve in the search for yields, but with overseas investors in particular keeping an eye on the Greek situation and local political developments.

Key trends Highlighted in the Report:

At the same time there are signs of cash-rich Asian developers and first tier pension funds investigating regional UK markets but scale still remains an issue with residential and student housing as preferred sectors.

Walter Boettcher, Chief Economist and Forecaster at Colliers added: “While Greece’s travails may be worrying Asian and other foreign investors, European investors look decidedly more relaxed under the assumption that the risk of contagion is all but curtailed. It is a tempting assumption although the potential shock is not just financial, ultimately it is political and that is where the real concerns should be focussed.”