European commercial realty investment up 2.5 per cent
Commercial real estate investment remained strong across Europe in the second quarter of 2016 totalling €54.0 billion, up 2.5 per cent on the previous quarter and 30.4 per cent on the 10 year average, new research from CBRE.
However, overall activity fell short compared to the second quarter of 2015 with the office sector having the strongest quarter, seeing an 8.3 per cent increase on the first three months of 2016, driven by a particularly strong performance in the Nordic region.
CBRE also points out that despite uncertainty in the UK caused by the European Union referendum, sentiment remained strong in other European markets and investment levels were stable year on year.
Investment volumes in France and Sweden, Europe’s third and fourth largest markets, were particularly resilient. The data shows that over the last year investment in these markets has grown 32 per cent and 20 per cent respectively. Indeed, second quarter results in both France and Sweden were boosted by buoyant office sectors.
Ireland also performed extremely strongly, transacting a record €2.3 billion of commercial property deals in the second quarter of 2016, more than double that of the same quarter last year, although the sale of the Blanchardstown Centre for close to €1 billion closed during this quarter.