CBRE has forecast a surge in activity in European retail parks and warehouses in 2015.
Hungary, Ireland, Portugal and the Nordics are expected to see an increase in activity in the coming year, according to the latest European Retail Investment MarketView report.
The forecast surge follows rising demand for European retail real estate in 2014 when investment reached €52bn (£37bn), the highest annual total since 2007 and a 24% increase on 2013’s €42bn.
The biggest change was reported across recovering markets, with Spain transacting €4bn in the year – a near twofold year-on-year increase and a record annual total.
Ireland, Portugal and the Netherlands also reported investment totals not seen since 2007/2008.
France saw the largest year-on-year change – 72% year-on-year to €6.4bn, its highest annual result since CBRE’s records began in 2004. This was heavily influenced by on-going restructuring within the larger retail property owners, such as Unibail-Rodamco, Klepierre and Carrefour.
The strength of international demand was one of the main contributors to last year’s performance, with 42% of acquisitions made by non-domestic investors.
The UK, France, The Netherlands and Germany were the main providers of intra-regional capital and Germany, Spain, Italy and the UK were the key destinations to benefit.
John Welham, head of EMEA retail capital markets at CBRE, said: “With government bond yields across Europe at record lows, real estate becomes ever more desirable and the income yield it offers, even at the core end of the retail market, is still relatively attractive.”
