France leads the way in investment market sales in Europe

France leads the way in EU investment property sales, the latest market figures suggest.

Sales in France in the year to Quarter 2, 2019, rose 5% to €8.5billion in the quarter and €34.6billion in the previous year, says international property agent, CBRE.

With availability down and Brexit worries persisting, the only sector to see a rise in Europe is hotels, which was up 4% to €6billion in the quarter and €24.3billion in the last 12 months. That is according to the latest European Investment Market Snapshot from CBRE for Q2, 2019.

Annual EU investment property sales at €293billion

In total, annual real estate investment in Europe reached €293billion – an 8% year-on-year fall due to a lack of quality product and fewer ultra-large transactions in key destinations. The total for Quarter 2 was €65.3billion.

In Germany, Europe’s largest market by volume, investment property totals were down 8% to €16.3billion in the quarter and €71billion in the year. Limited product availability and keen pricing have hampered growth.

Looking at the UK, the effects of a late cycle market and Brexit uncertainty are together putting pressure on sale values, which are down 20% to €10.6billion in the quarter and €61.5billion in the year.

Sale values were down 11% in the Netherlands to €4.1billion in the quarter and €18.1billion in the year.

Among the smaller European markets, sale values rose in Spain by a strong 38% to €2.6billion in the quarter and €17.7billion in the year and in Italy they increased 9% to €3.5billion in the quarter and €10.3billion in the year.

They also increased in Ireland by 13% to €1.5billion in the quarter and €4.4billion in the year.

Totals in Sweden were similar to Italy’s, at €3.6billion in the quarter and €10.6billion in the year, but that was down 17%.

The office sector is the biggest at €26.9billion in the quarter and €122.6billion in the year, a fall of 2%.

Next comes residential at €11.6billion in the quarter and €45.9billion in the year.

Retail fell 31% to €8.9billion in the quarter and €40.7billion in the year.

Industrial was down 2% to €6billion in the quarter and €32billion in the year.

Investment in other sectors was flat at €5.7billion for the quarter and €27.7billion for the year.

Consorto has news on the latest commercial real estate deals.

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