Overall spend on European retail commercial property continues to soar with a 47% increase on investment across the first three quarters of this year compared to the same period in 2013, according to a research report out today from DTZ.
The report shows that total investment volumes grew to EUR32bn up to Q3 this year. The UK and Germany were the biggest targets for investors with deals representing 38% and 21% of total investment. Southern Europe posted the biggest uplift, with a 209% increase in volume over the nine first months equating to EUR5bn of acquisitions recorded.
Shopping centres continue to have the biggest market share, accounting for more than half of retail volumes. The UK shopping centre market continues to be extremely buoyant, accounting for 36% of European totals. Southern Europe ranks at the second most active market, accounting for 19% of total investment volume.
Domestic investors were dominant in the overall retail market, but cross-border investors recorded EUR2bn of shopping centre acquisitions in Q3, with strong activity mainly in the UK and Southern Europe.
Magali Marton, DTZ’s Head of EMEA Research, said: “On the back of economic recovery and strong appeal for the retail sector, we forecast total retail investment volumes to reach EUR51bn in the full year of 2014 and EUR61bn in 2015. Finally, we project that shopping centres will attract about half of this retail volume at EUR25bn and EUR30bn in 2014 and 2015.”
Adrian Powell, DTZ’s Head of Retail, 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.”
