Investment in European retail property this year is tipped to beat that of 2015, according to a report by Cushman & Wakefield.

Increasing levels of Asian capital are targeting European retail, with prime units and centres in core cities attracting most demand, the company said.

Europe’s turnover is set to hit €70.5bn this year, according to David Hutchings, head of EMEA investment strategy at Cushman & Wakefield.

“With increasing levels of Asian capital looking towards the retail sector, prime retail units and centres in the best cities will see further strong demand, with Germany and the Nordics set to post a new high, underpinning the 5% growth forecast for the region overall,” Hutchings said.

Retail volumes rose 28% last year compared with the previous 12 months, with values leaping 8% due to strong growth in yields but also in prime rents in top European cities.

Retail in Germany and the Nordic region saw significant rises in investment.

The sector recorded the fastest growth in Europe’s commercial property market last year, with investment rising to a total of €67.3bn.

The sale of larger assets and portfolios also drove volumes higher in 2015.

“Against a backdrop of a healthy occupier market alongside a focus on the best space and cities, pricing will polarise this year, with prime yields having further to fall but weaker tiers of the market remaining out of favour,” Hutching said.

Italy and Poland, he added, look set for a strong year, but core markets will remain in highest demand in what looks set to be an uncertain and volatile global economy.