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24. Oktober 2011 
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Growth momentum in real estate investment volumes remains positive
Real estate investment volumes reached 25.7 billion Euros in Q3 2011, says DTZ Research. Volumes have averaged 28.7 billion Euros over the last four quarters, the eighth consecutive quarterly increase in this measure. Divergence of activity across Europe. France and Germany posted growth whilst UK saw volumes fall. CEE markets achieved strong growth reaching 1.7 billion Euros whilst the Nordics returned to usual levels of activity Cross border investment rose to 10.5 billion Euros reflecting higher levels of both inter and intra-regional activity Retail investment exceeded office investment for the second time this year as investors compete for the best quality shopping centres Investment volumes are set to reach 121 billion Euros in 2012, supported by an increase in sales from the banks.
Investment in commercial real estate across Europe in the third quarter of 2011 reached 25.7billion Euros, representing a marginal 3% fall from the 26.6 billion Euros in Q2, according to DTZ Research in the latest ‘European Investment Market Update’ report. However, the longer term trend, which accounts for seasonality, showed volumes continue to rise. Volumes over the last four quarters averaged 28.7 billion Euros, and represented the eighth consecutive quarterly increase in this measure.
Magali Marton, Head of DTZ CEMEA Research, said: “We have seen contrasting activity in Europe’s three biggest markets. The UK experienced a 15% decline in activity over the quarter to 7.1 billion Euros. But, both France and Germany registered increases. France registered a 19% increase in volumes to 3.6 billion Euros in Q3. Germany continues to attract capital with quarterly investment reaching 5.6 billion Euros, up 6% quarter-on-quarter”. Overseas investors returned to the market this quarter as volumes rose 10.5 billion Euros, reflecting a 41% market share, the highest level since 2009. Both inter and intra regional investors were more active. The majority of overseas investment has been focussed on the more transparent and liquid markets especially the UK, France and Germany. Overseas investors continue to increase their market share as domestic investors remained net sellers.
Retail accounted for the largest share of activity in Q3, representing 36% (9.2 billion Euros) of total volumes. The appetite for retail remained strong as investors take advantage of the flight towards quality assets, dominated by shopping centres and retail parks. In contrast, investment in offices declined by 22% on a quarterly basis to 8.9 billion Euros. Nonetheless the sector still accounts for 35% of total volumes this quarter. Tony McGough, Global Head of DTZ Forecasting & Strategy Research, comments: “Looking forward to 2012 we see steady growth in activity with investment volumes set to reach 121 billion Euros, representing an 11% on our estimate for 2011. As the pace of bank deleveraging starts to increase, particularly towards more secondary assets, we see an increase in product coming to the market supporting increased transactional activity, though this is all predicated on a resolution of Europe’s sovereign debt issues.”
Investment in commercial real estate across Europe in the third quarter of 2011 reached 25.7billion Euros, representing a marginal 3% fall from the 26.6 billion Euros in Q2, according to DTZ Research in the latest ‘European Investment Market Update’ report. However, the longer term trend, which accounts for seasonality, showed volumes continue to rise. Volumes over the last four quarters averaged 28.7 billion Euros, and represented the eighth consecutive quarterly increase in this measure.
Magali Marton, Head of DTZ CEMEA Research, said: “We have seen contrasting activity in Europe’s three biggest markets. The UK experienced a 15% decline in activity over the quarter to 7.1 billion Euros. But, both France and Germany registered increases. France registered a 19% increase in volumes to 3.6 billion Euros in Q3. Germany continues to attract capital with quarterly investment reaching 5.6 billion Euros, up 6% quarter-on-quarter”. Overseas investors returned to the market this quarter as volumes rose 10.5 billion Euros, reflecting a 41% market share, the highest level since 2009. Both inter and intra regional investors were more active. The majority of overseas investment has been focussed on the more transparent and liquid markets especially the UK, France and Germany. Overseas investors continue to increase their market share as domestic investors remained net sellers.
Retail accounted for the largest share of activity in Q3, representing 36% (9.2 billion Euros) of total volumes. The appetite for retail remained strong as investors take advantage of the flight towards quality assets, dominated by shopping centres and retail parks. In contrast, investment in offices declined by 22% on a quarterly basis to 8.9 billion Euros. Nonetheless the sector still accounts for 35% of total volumes this quarter. Tony McGough, Global Head of DTZ Forecasting & Strategy Research, comments: “Looking forward to 2012 we see steady growth in activity with investment volumes set to reach 121 billion Euros, representing an 11% on our estimate for 2011. As the pace of bank deleveraging starts to increase, particularly towards more secondary assets, we see an increase in product coming to the market supporting increased transactional activity, though this is all predicated on a resolution of Europe’s sovereign debt issues.”
