European retail investment is set to reach €51 bn in 2014 on the back of economic recovery, with shopping centres accounting for about 50% of the total volume, according to new research from DTZ.
European retail investment is set to reach €51 bn in 2014 on the back of economic recovery, with shopping centres accounting for about 50% of the total volume, according to new research from DTZ.
Investment volumes are forecast to rise even further in 2015 to hit €61 bn, with shopping centres again accounting for about half of the total.
In the first nine months of this year, European retail investment volumes rose 47% to €32 bn compared with the year-earlier period, driven by the UK and Germany which accounted for 38% and 21% respectively of total investment. Southern Europe posted the biggest uplift, with a 209% increase in volumes over the nine first months equating to €5 bn of acquisitions.
Shopping centres continue to be the most favoured retail segment, accounting for more than half of total volumes. The UK shopping centre market continues to be ‘extremely buoyant’, DTZ said, accounting for 36% of the European total. Southern Europe ranks as the second most active market, accounting for 19% of total investment volume.
Adrian Powell, DTZ’s head of retail, commented: ‘Investors are continuing to see retail-related property as a really strong area for commercial returns and the market for securing acquisitions is incredibly competitive. We fully expect this competition to continue, particularly in the shopping centre sector where the UK remains a very strong market for investors.’
