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Eight out of the ten largest geographic markets saw investment volume growth in the first half of the year
July 31, 2024 | Staff Reporter | Europe | Property Management
Investment in European real estate reached €86.5billion in H1 2024, up 10% on H1 2023, according to the latest data from global real estate advisor, CBRE. Investment in Q2 was also up 16% on Q2 2023, reaching €45.5billion. Whilst Q2 volumes remain modest compared to the ten-year average of €71.7billion, this uptick in activity marks a significant shift in market trends.
All major sectors saw an increase in investment activity when compared with the first half of 2023, led by the hotels and living sectors. Hotels had its strongest quarter since Q4 2021, with investment reaching €5.4billion in Q2. For the first half of the year, hotels volumes rose 62% to €9.9billion, whilst the living sector saw volumes increase 6% to €18.3billion.
The office sector edged out living as the first half’s most active sector, with investment volumes reaching €18.7billion, up 1%. Meanwhile, the industrial sector saw volumes reach €16.1billion in H1 2024, up 7% year-on-year whilst total retail volumes reached €13.5billion in H1 2024, up 1%. “It is clear that investment sentiment is starting to improve across Europe and the uptick we have seen supports CBRE’s forecast of 10% growth in market volumes for 2024. The resurgence in activity has been driven by a stabilisation of asset prices, with prime yields across all major sectors remaining flat since March. As the market continues to recover, buyers and sellers will start to become more comfortable with pricing, which will further support the more positive market dynamics we are starting to see,” said Chris Brett, Managing Director, Capital Markets Europe, CBRE.
The resurgence in activity has been driven by a stabilisation of asset prices, with prime yields across all major sectors remaining flat since March. As the market continues to recover, buyers and sellers will start to become more comfortable with pricing, which will further support the more positive market dynamics we are starting to see.
Chris Brett, Managing Director, Capital Markets Europe, CBRE
Promisingly, eight out of the ten largest geographic markets saw investment volume growth in the first half of the year. Germany and the UK saw particularly strong performance, with increases of 15% and 10% respectively. The major Continental European regions all saw growth compared with the previous year, with CEE up 21%, the Nordics up 26%, Benelux up 71% and Iberia, which had a very strong 2023, up 2%.
