#MIPIM European retail investment to hit €56b in 2015 – C&W

Retail property investment across the EMEA region is set to rise 14.5% to €56.3 bn in 2015 on the back of a firmer economy and stronger consumer sentiment, according to research released by Cushman & Wakefield at MIPIM.

The prediction follows a strong year in 2014 which saw retail property investment hit a seven-year high of €49.2 bn, the broker’s International Investment Atlas reveals.

Most of Europe is set to see further economic recovery in 2015 and stronger consumer confidence. ‘Conditions in the retail market will be more favourable this year thanks to lower oil prices and deflation as well as a steady improvement in employment,’ said David Hutchings, head of EMEA investment strategy at Cushman & Wakefield.

‘However, a rising tide of consumer demand is not going to lift all retailers or retail property as the sector changes at an even faster pace than usual thanks to multi-channel retailing,’he noted. ‘What’s more, performance is going to be more differentiated by city as the characteristics of a winning property increasingly rely on the quality of the urban area they sit in.’

C&W said investment activity last year would have been even higher had there been sufficient available stock in target European markets.

The UK and Germany remain the number one and two retail markets despite a slight fall in activity over the year as a whole, with the level of available quality stock failing to meet demand. France however took advantage of this, with very strong growth of over 94%, cementing its third spot against a challenge earlier in the year from Spain.

Southern Europe in general performed well, with volumes in Spain up 117% at €2.6 bn, while Italy rose 65% and Portugal 98%. The fastest growth was booked in Ireland (714%), the Czech Republic (407%), Austria (328%) and the Netherlands (207%).

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