Investment in European real estate surged by 10% in the first six months of 2024 compared to the same period last year, reaching a total of €86.5 bn, according to CBRE.
The second quarter alone saw a 16% increase in investment, totaling €45.5 bn. While still below the ten-year quarterly average of €71.7 bn, this upward trend signifies a notable shift in market conditions.
All major real estate sectors experienced growth. The hotel industry experienced its strongest quarter since Q4 2021, with Q2 investment reaching €5.4 bn, while in H1 hotel investment soared by 62% to €9.9 bn. The Living sector also saw positive momentum, with a 6% increase in investment to €18.3 bn.
Office remained the most active sector in H1 2024, with investment totaling €18.7 bn, a slight 1% increase year-on-year. The Industrial sector followed closely, recording a 7% growth to €16.1 bn. Retail investment also edged up by 1% to reach €13.5 bn in H1 2024.
Eight of the top ten European real estate markets experienced investment growth, led by Germany and the UK with increases of 15% and 10%, respectively. Central and Eastern Europe was up 21%, the Nordics climbed 26%, Benelux surged 71%, and Iberia added 2% to a strong 2023 performance.
Chris Brett, managing director, Capital Markets Europe, CBRE, commented: ‘It is clear that investment sentiment is starting to improve across Europe and the uptick we have seen supports CBRE’s forecast of 10% growth in market volumes for 2024. The resurgence in activity has been driven by a stabilisation of asset prices, with prime yields across all major sectors remaining flat since March. As the market continues to recover, buyers and sellers will start to become more comfortable with pricing, which will further support the more positive market dynamics we are starting to see.’
