Q1 Investment Into Europe Reaches Third Highest First Quarter Level On Record
Dublin, 5 May 2016 – Investment into European real estate for the first quarter of 2016 reached €50.7 billion. With investment levels significantly above the ten year average of €43 billion, Q1 2016 was the third best first quarter on record, surpassed only twice before, in 2007 and 2015.
Finland, the Netherlands, Portugal, Belgium and Russia all had strong first quarters. Finland had its best quarter since Q1 2008 with €1.8 billion invested, a 214% uplift compared to Q1 2015. The Netherlands recorded €2.1 billion of investment, a 75% increase compared to the same quarter in 2015, and Portugal and Belgium also saw strong levels of investment with year-on-year increases of 158% and 31% respectively. In Russia, following a quiet couple of years, the market picked up and Q1 2016 investment volumes grew by 177% year-on-year, driven largely by domestic buyers attracted by keen pricing and rents which appear to have bottomed out.
A number of factors, including equity market volatility and lack of available prime assets helped to slightly mute investment into French and German markets as well as the UK, which has contended with Brexit uncertainty
At a sector level, industrial property attracted €5.8 billion of investment, its best first quarter on record, up 57% on Q1 2015. Compared to other sectors, investment into industrial assets in Q1 made up 11.5% of the total investment into European commercial real estate. This is almost double (6%) when compared to the same quarter in 2015.
European commercial real estate continues to attract strong levels of interest, despite macro-economic uncertainty in some markets, and there is a significant weight of capital, both domestic and international, still looking to enter the market. The prevailing trend is slightly less opportunistic than we have seen in previous quarters and demand is very much focused around quality income and core assets.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 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.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 165 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.