Germany overtook the UK in commercial real estate investment in the first half of 2017 as volumes soared 41% year-on-year to €22.4bn (£20.3bn).
Investment into the UK fell 20% to €22.1bn, according to Knight Frank’s Q2 Commercial property outlook, although that was still three times more than the €7bn invested in Spain, which was the third most active market in Europe.
Overall investment into Europe fell 8% to €90.3bn in the first half of the year as France, Italy and Sweden also saw capital shift away from their markets.
Knight Frank said it expects volumes to pick up in France in the second half of the year considering the country’s “significant backlog” of deals.
Prime office yields continue to fall across Europe as rents continue to rise or hold steady in 24 of the 26 cities in the report.
London’s West End and Moscow were the only exceptions.
To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette
