Total investment in Europe reached €68.8bn in Q2 2018

Total real estate investment in Europe reached €68.8bn in Q2 2018, representing a small decrease of 8% on the same period last year, according to the latest report from global real estate advisor, CBRE. This brings total investment in real estate in H1 2018 to €127.7bn, compared to €132.2bn recorded in H1 2017.

Q2 2018 investment activity was driven by strong growth in the offices sector, with volumes totaling €29bn, compared to €24.1bn in Q2 2017. Office investment for H1 2018 was also up 11% on the same period last year. Furthermore, investment into Alternatives, including healthcare and student accommodation, remained resilient, with volumes on par with Q2 2017 and 6% up on H1 2017.

Following a year of political uncertainty and economic reform, investment volumes in France re-bounded. Transaction levels for H1 2018 increased by 28% compared to H1 2017 with volumes for the last 12 months up 14%.

Following a more subdued start to the year, The UK posted a strong second quarter. Total investment in Q2 2018 reached €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 remains unabated. Similarly, 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.

Jonathan Hull, managing director of Investment Properties, EMEA at CBRE
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.
Jonathan Hull, managing director of Investment Properties, EMEA at CBRE