CBRE: European real estate investments up 10% in H1
A significant shift in market trends has led to a 10% increase in investment into European real estate in the first six months of the year, according to the latest data from CBRE.
“It is clear that investment sentiment is starting to improve across Europe and the uptick we have seen supports CBRE’s forecast of 10% growth in market volumes for 2024,” said Chris Brett, managing director, European capital markets, CBRE. “The resurgence in activity has been driven by a stabilisation of asset prices, with prime yields across all major sectors remaining flat since March.”
Volumes reached €86.5 billion in H1 2024, up 10% on H1 2023. Investment in Q2 was also up 16% on Q2 2023, reaching €45.5 billion, a positive sign of an uptick in activity although volumes remain modest compared to the ten-year Q2 average of €71.7 billion.
All major sectors saw an increase in investment activity when compared with the first half of 2023, led by the hotels and living sectors. Hotels had its strongest quarter since Q4 2021, with investment reaching €5.4 billion in Q2. For the first half of the year, hotels volumes rose 62% to €9.9 billion, while the living sector saw volumes increase 6% to €18.3 billion.
Office edged out living as the first half’s most active sector, with investment volumes up 1% to reach €18.7 billion. Meanwhile, Industrial saw volumes reach €16.1 billion in H1 2024, up 7% year-on-year, while total retail volumes reached €13.5 billion in H1 2024, up 1%.
Promisingly, eight out of the ten largest geographic markets saw investment volume growth in the first half of the year. Germany and the UK saw a particularly strong performance, with increases of 15% and 10% respectively.
The major continental European regions all saw growth compared with the previous year, with CEE up 21%, the Nordics up 26%, Benelux up 71% and Iberia, which had a very strong 2023, up 2%.
“As the market continues to recover, buyers and sellers will start to become more comfortable with pricing, which will further support the more positive market dynamics we are starting to see,” said Brett.
