Investment volumes in European retail real estate remained high in the first half of 2007 reaching EUR 21.6 bn, according to the latest European Retail Investment Strategy 2007-2009 issued by AXA Reim. The reviews authors add that although this figure represents a slight slowdown on the euro 27 bn achieved in the same period in 2006, volumes are expected to be pushed higher in the second half, as there are reportedly a number of significant deals currently under offer.

Investment volumes in European retail real estate remained high in the first half of 2007 reaching EUR 21.6 bn, according to the latest European Retail Investment Strategy 2007-2009 issued by AXA Reim. The reviews authors add that although this figure represents a slight slowdown on the euro 27 bn achieved in the same period in 2006, volumes are expected to be pushed higher in the second half, as there are reportedly a number of significant deals currently under offer.

The retail sector in Europe is likely to remain the most robust sector according to the review, due to its limited volatility and tighter planning regulations. However, the review also notes that European retail property markets are set to see lower core returns going forward. Prague was singled out as having the most attractive performance prospects on a risk-adjusted basis according to the technical retail scoring matrix, whereas Milan, Rome and Vienna had the least.

According to the review, 'core' investors should target prime high street locations in top European cities and shopping centres in secondary cities. 'Value-added' investors should target well-located shopping centres, hypermarkets/supermarkets and unit shops with active management and redevelopment potential in order to capture future reversions.