EMEA retail investment grew by 94% in Q1 2015 - Colliers

Retail investment volumes almost doubled across Europe in the first quarter of 2015, fuelled by rising rents and a revival in consumer spending, research by Colliers International has found.

Across the EMEA region investment volumes rose by 94% year-on-year to €19.1 bn, their highest level since 2007, raising expectations that last year’s total of €51.8 bn will be surpassed.

Colliers said it expected the European Central Bank’s quantitative easing programme to continue to drive up retail investment volumes, along with further growth in consumer spending and retail sales. Retail trade volume increased by 1.9% in the EU and 1.3% in the Eurozone over the period.

Bruno Berretta, Colliers International EMEA head of research, said: ‘Last year retail investment showed a comeback to almost pre-recession levels, but given the strength of the market during the first quarter of this year, with transactions already 37% of the 2014 total, we can expect an even better performance in 2015.'

The UK accounted for more than 30% of all investment last year with €16.9 bn, a 19% increase. London also recorded strong growth in prime rents, with Bond Street rents growing by 25% to a record level of £1,500 per square foot (€2,200 per m2). London shopping centres saw rents increase by 6%.

Germany took €8.3 bn of the investment total, up by 5%, while France saw investment grow by 84% to €5.8 bn and Spain recorded a 179% increase to €4.3 bn. Meanwhile, investment in the Nordics fell by 15% to €3.9 bn.

Prime shopping centre rates stabilised in Central and Eastern Europe, with the exception of Moscow, St Petersburg, Kiev and Zagreb. Small prime retail rental growth was witnessed in Bratislava and Warsaw as well as Baltic cities Tallinn and Vilnius.


‘We also expect core Western European markets to continue to be top of the list for investors but as these heat up, more peripheral markets such as Spain, Italy, Ireland and Portugal will see increased activity.’