EUROPEAN COMMERCIAL REAL ESTATE INVESTMENT HITS HIGHEST QUARTERLY TOTAL SINCE 2006
- Investment Volumes Reach €78 Billion in Q4 2014 -
- 32% Uplift in Full Year Activity Compared to 2013 -
London, 23 January 2014 – Investment in European commercial real estate (CRE) in the fourth quarter of 2014 reached its highest quarterly total since 2006, according to the latest research from CBRE.
Commercial real estate investment volumes reached €78 billion in Q4 2014, 49% higher than the previous quarter and 27% higher than the same period in 2013. For the year as a whole, the total value of CRE investment across the region was €218 billion, an uplift of 32% on 2013.
Nearly all Western European countries saw significantly higher investment activity in Q4 2014, than in the same quarter in 2013. Sweden and the Netherlands were particularly strong, with Q4 2014 turnover close to historic highs and up 97% and 89%, respectively, year-on-year.
The Netherlands, which saw steady growth in investment activity throughout 2014, recorded nearly €4 billion of transactions in Q4 2014, bringing the total for the year to more than double that of 2013. Spain, Italy and Portugal also recorded very high levels of transactions in Q4 2014, with 65% of all the activity for the year in Portugal transacted in the final quarter.
Jonathan Hull, Head of EMEA Capital Markets at CBRE, commented:
“2014 saw the emergence of the more opportunistic investor, as many recognised the need to participate in the European recovery story. This was particularly evident in the final quarter of the year, with increased capital flows into markets that had been especially affected by the recent downturn such as the Netherlands, Spain, Italy and Portugal.”
On an annual basis Sweden (€14.5 billion), Spain (€10.2 billion) and Ireland (€4.59 billion) recorded record levels of CRE investment. At €77 billion for the year, the United Kingdom was also within 10% of its previous record year - 2006.
Unsurprisingly, investment activity in Russia was relatively weak all year, with the total for Q4 2014 particularly low at just €238 million. Economic sanctions and the fall in the price of oil affected investor confidence, and total activity for the year was less than half the level in 2013 at €2.7 billion.