Interest spreads to secondary property in key European markets, CBRE

CB Richard Ellis’ European investment market briefing at EXPO REAL in Munich today revealed investor sentiment is improving across much of western Europe, mirroring the better economic performance and the strong run in Europe’s stock markets since March. Many REITs are now trading at a premium to NAV, indicating an expectation of improving capital values, says the firm.

CBRE report interest as predominantly concentrated on prime property in most locations with the majority of interest coming from equity investors. The exception is the UK, it says, where interest has spread from the prime segment into nearly all parts of the sector, largely due to the lack of prime property on the market. This trend is expected to spread to other parts of Europe over the next few months, say CBRE, with Paris expected to be one of the first places where demand expands to include the semi-prime part of the market.