Retail commercial property investments soar 47% YoY across Europe
Commercial property company DTZ suggests in new research that retail commercial property investments have hit €32bn so far this year across Europe, up 47% on the same period last year.
Investors on the hunt for yield are driving the market, the figures suggest, with significant sums invested in retail parks and shopping malls.
The UK and Germany are the biggest markets as measured by the 38% and 21% share respectively of total European investments tracked.
However, as measured by the increase in volume it is southern Europe that is leading the charge: over the first nine months of 2014 the area saw volume up 209% on the year earlier period, with some €5bn of acquisitions recorded.
DTZ believes that appetite for the retail sector will push up investments in retail property to €51bn the the end of 2014, and up to €61bn in 2015.
According to existing data, there is some 9 million square metres of additional shopping centre space being added across Europe by the end of 2016, with Turkey particularly active in terms of its development pipeline. There cities such as Ankara and Istanbul are seen as undersupplied, but there are also cities in the UK that are attracting investments for the same reason, such as London, Manchester and Edinburgh, DTZ said.
The UK currently accounts for some 36% of shopping centre transactions, DTZ added.