European retail investment rose to €41.3 bn in 2013, up 20.4% on the €34.3 bn transacted in 2012 as economic sentiment improved, according to research from CBRE.
European retail investment rose to €41.3 bn in 2013, up 20.4% on the €34.3 bn transacted in 2012 as economic sentiment improved, according to research from CBRE.
The 2013 result marks the strongest year for retail investment in Europe since 2007, CBRE said.
The figures reflect a strong final quarter which saw investment jump to €15.5 bn, the highest quarterly total since Q4 2006 and almost double the Q3 2013 total.
Retail investment activity continues to broaden both geographically and in terms of asset quality, CBRE said.
The final quarter of 2013 saw a pronounced revival in Southern Europe, Ireland and also a growing number of deals in fringe Central and Eastern Europe (CEE) markets. The diversity of investors is also growing with North American, Asian and Middle Eastern capital active across a wide range of retail segments and markets.
John Welham, head of EMEA retail investment at CBRE, commented: ‘Early autumn 2013 saw the first major wave of investors looking beyond core-assets in major markets and toward non-core opportunities. This trend accelerated in the last quarter, exceeding expectations in many markets, including those most affected by the eurozone crisis such as Spain, Italy and Ireland.’
He added: ‘The most significant push factors behind this trend continue to be relative pricing, with investors increasingly looking for better yields, and constrained product availability at the core end of the market.’
