EUROPEAN REAL ESTATE INVESTMENT ACTIVE IN H1 2018
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.
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.