MAPIC: Total European retail investment levels have reached €32bn (£25.5bn) to the year to date – a 47% increase on last year.
According to research from DTZ, the UK and Germany are the biggest targets for investors, representing 38% and 21% of total investment respectively.
Southern Europe has seen the biggest uplift overall, with a 209% increase in volume over the past nine months following €5bn worth of recorded acquisitions.
Shopping centres continue to have the biggest market share, accounting for more than half of retail volumes. The UK shopping centre market is extremely buoyant, accounting for 36% of European totals. Southern Europe ranks as the second most active market, with 19% of total investment volume.
According to the report, if investor appetite for this sector continues, then total investment volumes could reach as much as €51bn (£41bn) this year, and €61 (49bn) in 2015.
Magali Marton, DTZ’s head of EMEA research, said: “We project that shopping centres will attract about half of this retail volume, at €25bn and €30bn in 2014 and 2015.”
Adrian Powell, head of retail at DTZ, said: “Investors are continuing to see retail-related property as a really strong area for commercial returns and the market for securing acquisitions is incredibly competitive. We fully expect this competition to continue, particularly in the shopping centre sector where the UK remains a very strong market for investors.”
Listen to an interview with Barry O’Donnell, head of shopping centre investment for DTZ, here
