Real estate investment in Europe fell 8% in Q2 year-on-year bringing the H1 total to €127.7 bn, compared to €132.2 bn in the same period last year, but the office sector bucked the trend with an increase of 11%, according to the latest report from advisor CBRE.
Overall, office investment rose to €29 bn in the first H1 2018, the advisor said. Investment in alternatives (including healthcare and student accommodation) was also up, with a 6% increase on H1 2017.
‘The Continental European markets have posted a strong first half to the year and have continued to perform well throughout Q2 2018,’ commented Jonathan Hull, managing director of investment properties, EMEA at CBRE.
‘Germany has once again proved a major focus for capital and has demonstrated its status as a safe haven for global wealth and we have witnessed the predicted recovery in France following a politically turbulent year.’
Indeed, French transaction levels increased by 28% in H1 2018 compared to last year while Germany also performed well with investment volumes of €24.5 bn for the first six months.
‘Similarly, the Netherlands and Belgium have performed exceptionally well, boosted by the sale of a large residential portfolio in the Netherlands. After a relatively slow start to the year, the UK has seen a significant recovery in investment volumes in Q2 2018. Despite ongoing political uncertainties, the UK remains an attractive destination for European and global capital,’ Hull said.
The UK turned in an investment volume of €19.9 bn in Q2, driven by a record quarter for London City office investment. Investment volumes in the UK for the last 12 months were up 15% on the same period previously as demand from Asian investors remains unabated.
