Across the whole of Europe (including UK and Ireland), investment volumes totalled €315 billion in 2019, down -2% from €322 billion in the previous year. The small decrease in 2019 was due to a-19% decline in UK volumes reflecting investor caution in the face of ongoing political uncertainty. Germany recorded the largest investment volume for the second year in a row. France, the Netherlands, Sweden, Italy, Ireland, Austria and Portugal all also posted historic highs in 2019.
The market environment remains favourable towards 2020 due to positive investor sentiment and lower interest rates.
Turning to the European industrial and logistics sector, investment reached an outstanding total of €14 billion in Q4 2019, an increase of 21% YoY and 83% QoQ, according to CBRE. Logistics volumes continued to outperform the wider property market in 2019, with a rise of 3% for the year to €35.3 billion, continuing the Logicor-adjusted upward trend.
The best performers in 4Q19 were France, where volumes were up 160% YoY, Austria where they doubled and Italy, up 89%. France leapfrogged the UK, (which recovered to €2.8 billion in the quarter), to become the largest European market, with volumes of €2.9 billion. Germany was 3rd with €2.7 billion and Netherlands 4th with €1.1 billion, CBRE data shows.
Capital flows into European logistics in 2019 were 3% higher at €35 billion and for the 4Q 2019 alone, the total of €14 billion was the highest since the €20 billion peak when Logicor was acquired in Q2 2017. There was a 16% rise in 12-month European cross border logistics investment to €7.7 billion and a 9% increase in North American flows to €7.7 billion. Domestic volumes were stable at €15.7 billion and remained the largest category. With little involvement in the major portfolio deals, Asian investor flows fell 14% to €2.4 billion.