Investment: retail assets hold firm with stable market share
As European commercial real estate markets adjust, the different asset categories are following diverging trajectories: retail is still in third place, accounting for around 20% of overall investment (vs. 14% at the end of the Covid crisis in late 2021), behind logistics assets, which remain popular, and offices, which are still struggling. Indeed, for the first time, investment in offices and logistics is neck and neck, with each accounting for 25% of overall investment over the last 12 months. After retail premises come hotels, which have flourished on the back of keener investor interest; investment in the category has surged by 40% year-on-year and they now account for 12% of allocations.
With some € 28bn invested over the last twelve months, investment in retail assets has fallen by an average of -9% in Europe, with divergent market trends. It rose by 10% in Germany, fell slightly in the United Kingdom (-3%) and continued to slide in France (-18%). Together, these three countries account for two-thirds of investment in retail premises. We also note strong growth in Italy (+272%), thanks to a record-breaking deal on Via Monte Napoleone, and in Spain (+47%), where investors are currently showing a keen interest in shopping centres.
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