Investment into European real estate reached €69.2 bn in the third quarter of 2018, the second-strongest Q3 on record, bringing the total for the first nine months of the year to €216 bn, according to the latest data from global real estate advisor CBRE.
Looking at the 12-month trend, investment volumes are broadly flat compared to the same period in the previous year and the market continues to perform at near-record levels.
Real estate investment in Germany and France remained buoyant. Germany continued to experience robust growth and recorded an increase of 12% compared to 2017, with investment volumes reaching €19.5 bn. This has been primarily driven by a strong residential market, up 38% year-on-year, and office sales in the top five German cities. Similarly, France has remained resilient, posting €4.7 bn for Q3 and taking year-to-date investment volumes up 18% to €19.2 bn.
In the UK, investment transaction volumes reached €18.5 bn, a slight decline on the same period last year. Central London office transactions continued to drive investment volumes across the UK as the office market remains attractive to global investors.
The continued strength of the industrial sector reflected another notable quarter, with volumes reaching over €7 bn for the fourth consecutive quarter and taking year-to-date investment volumes to €22.5 bn. Alternatives, including healthcare, leisure and parking, also remained resilient, with investment volumes increasing by 8% in the first three quarters of 2018 compared to the same period in the previous year.
Against a backdrop of uncertainty for the retail sector, European retail investment volumes reached €10.8 bn in Q3 and contributed to an increase of 5% in the first three quarters of 2018 compared to the same period in 2017.
Investment Volume (EUR bn)
17Q1-Q3 18Q1-Q3 17Q3 18Q3
Europe - all sectors 214.825 215.801 73.390 69.204
Europe - excl. resi 185.281 179.979 63.712 60.810
Source: CBRE Research
