Investment activity in the European retail property market intensified in the fourth quarter of 2013, propelling total volumes for the year to €34 bn, DTZ said in a new report published during MIPIM at Cannes.
Investment activity in the European retail property market intensified in the fourth quarter of 2013, propelling total volumes for the year to €34 bn, DTZ said in a new report published during MIPIM at Cannes.
Last year's volume includes €12 bn transacted in the fourth quarter of 2013. This compares to €29 bn of trades for the whole of 2012.
The UK and Germany accounted for 33% and 27% of the 2013 volumes. However, the largest increase in the year was recorded in Southern Europe with volumes rising to €3 bn from €700 mln in 2012.
Shopping centre investment rebounded sharply in 2013 with volumes reaching €17 bn, up from €13.7 bn in 2012. The UK market was extremely buoyant, accounting for 31% of the European volume.
DTZ anticipates that retail investment will climb to €38 bn in 2014, of which €17-18 bn will be invested in shopping centres.
Adrian Powell, head of EMEA retail at DTZ, commented: 'With Europe's improving macro economic outlook, we are seeing a long-awaited return of consumer and retailer confidence. This positive commercial environment continues to attract an increasing supply of capital to retail markets across Europe from both core and value-add investors resulting in downward pressure on yields, particular in markets that have been starved of capital growth over recent years. Market players are continuing to favour shopping centre assets, accounting for 61% of total retail investment in 2013.'
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