Investment into Europe falls for first half of the year as UK investment rises

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Inbound real estate investment to Europe fell 8% in the first half of the year, according to CBRE.

Investment into Europe totalled €127.7bn (£114.2bn) for the first six months of the year, compared to the €132.2bn recorded in H1 2017.

The UK posted a strong second quarter with total investment reaching €19.9bn, driven by a record quarter for London City office investment. Investment volumes in the UK for the last 12 months were up 15% on the same period previously as demand from Asian investors remained unabated.

Transaction levels in France for H1 2018 increased by 28% compared to H1 2017 with volumes for the last 12 months up 14%. Germany continued to perform well, posting investment volumes of €24.5bn for H1 2018, and Benelux and the Netherlands also posted strong performances, up 43% and 40% respectively on H1 2017.

CBRE said investment activity in the second quarter across Europe was driven by strong growth in the offices sector, with volumes totalling €29bn, compared to €24.1bn in Q2 2017.

Office investment for H1 2018 was up 11% on the same period last year. Furthermore, investment into alternative assets, including healthcare and student accommodation, was on par with the second quarter of last year and 6% up on H1 2017.

Jonathan Hull, managing director of investment properties, EMEA at CBRE, said: “The continental European markets have posted a strong first half to the year and have continued to perform well throughout Q2 2018. Germany has once again proved a major focus for capital and has demonstrated its status as a safe haven for global wealth and we have witnessed the predicted recovery in France following a politically turbulent year. Similarly, The Netherlands and Belgium have performed exceptionally well, boosted by the sale of a large residential portfolio in the Netherlands. After a relatively slow start to the year, the UK has seen a significant recovery in investment volumes in Q2 2018. Despite ongoing political uncertainties, the UK remains an attractive destination for European and global capital.”

Source: Property Week