European Real Estate Investment Volumes Total €69.2 Billion In Q3 2018
London, 6 November 2018 – Investment into European real estate in the third quarter of 2018 reached €69.2 billion, the second strongest Q3 on record, and bringing the total for the first three quarters of 2018 to €216 billion, according to the latest data from global real estate advisor CBRE.
Looking at the 12-month trend, investment volumes are broadly flat compared to the same period in the previous year and the market continues to perform at near-record levels.
Real estate investment in Germany and France remained strong. Germany continued to experience robust growth and recorded an increase of 12% compared to 2017, and saw investment volumes reach €19.5 billion. This has been primarily driven by a strong residential market, up 38% year-on-year, and office sales in the top five German cities. Similarly, France has remained resilient posting €4.7 billion for Q3 2018 and taking year-to-date investment volumes up 18% to €19.2 billion.
In the UK, investment transaction volumes reached €18.5 billion, a slight decline on the same period last year. Central London office transactions continued to drive investment volumes across the UK as the office market remains attractive to global investors.
The continued strength of the industrial sector reflected another notable quarter, and reached above €7 billion for the fourth consecutive quarter, taking year to date investment volumes to €22.5 billion. Alternatives, including healthcare, leisure and parking, also remained resilient, with investment volumes increasing by 8% in the first three quarters of 2018 compared to the same period in the previous year.
Against a backdrop of uncertainty for the retail sector, European retail investment volumes reached €10.8 billion in Q3 and contributed to an increase of 5% in the first three quarters of 2018 compared to the same period in 2017.
Continental Europe has posted robust investment numbers for Q3 showing the strength of demand across all major markets. Whilst European institutional demand remains strong, international capital continues to target the European market. We have seen particularly strong demand from Korean institutions across the region. Looking forward to the end of the year we anticipate that investor demand and capital allocations to commercial real estate will remain strong reflecting investor confidence in the asset class.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 150 employees, we work with occupiers, investors and developers of office, industrial and logistics, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie