Investment activity increased four-fold in Brussels during the third quarter of this year compared to the previous three months, according to Savills. Foreign buyers, in particular German funds, re-entered the market but domestic investors still held a majority share.
Investment activity increased four-fold in Brussels during the third quarter of this year compared to the previous three months, according to Savills. Foreign buyers, in particular German funds, re-entered the market but domestic investors still held a majority share.
The international real estate advisor recorded EUR 142 mln transactions in the past quarter in Brussels, including Real I.S's purchase of Ernst & Young'sHQ from Segro for around EUR 35 mln, and IVG's purchase of Estuary Properties N.V the owner of the multi-let building on Rue Idalie 9-13 in the EU district for below EUR 15 mln.
Although the figure represents a 62% decrease year-on-year, the quarter was exceptionally active, Savills said. Foreign purchasers represented 23% of buyers, having been inactive in the previous quarter, with French buyers accounting for a 2.5% market share, Dutch 7.7% and German funds 10.3%.
CBD prime yields currently stand at 6.75% for 3/6 year leases and at 6% for 9+ year leases. Savills predicts a lack of prime assets could see yield compression for top tier prime assets at sub-6%.
Sheelam Chadha, head of research for Savills Benelux, said: 'Although some key deals this quarter should re-ignite confidence in the investment market, the lack of prime assets could see some keen players competing, which could even cause some yield compression in the top-tier market. However, overall market conditions will not improve much more until 2010.'
