Property adviser DTZ expects European real estate investment volumes will reach 鈧�119 bn in 2013.
Property adviser DTZ expects European real estate investment volumes will reach 鈧�119 bn in 2013.
DTZ said that European deal volume came to 鈧�26.5 bn in the second quarter of 2013. Although this represented an 8% decline on the first quarter, the volume for the first six months of 2013 was up 9% year-on-year at 鈧�55.1 bn as sentiment continues to improve across many European markets.
Most investors remain focussed on the UK, Germany and France, representing 69% of volumes in Q2. The UK continued to perform well with 鈧�8.7 bn of transactions recorded in Q2 2013, up 4% over the quarter.
France posted a 9% increase to 鈧�3.8 bn, while investment activity in Germany declined 8% over the quarter to 鈧�5.9 bn. Only France and Germany saw volumes in the first half of the year grow compared to the same period last year, with UK volumes edging lower.
The pattern of activity remained mixed across the rest of Europe during the second quarter. Volumes stabilised in the Nordics at 鈧�3.7 bn in contrast to decreasing market activity in Central Eastern Europe (-19%) where volumes totalled 鈧�700 mln.
Southern Europe reached a turning point; the mega deal by Qatari Investors in Milan pushed Italian volumes to 鈧�1.1 bn whilst Spain (鈧�531 mln) benefited from the return of foreign investors. A resurgence of activity has also been noticed in Benelux which ended the second quarter at 鈧�1.7 bn, up from 鈧�1.2 bn in Q1 2013. All these regions saw much stronger first-half volumes compared with the same period last year.
Paul Boursican, head of international investment EMEA at DTZ, said: 'Foreign investment remained strong over the quarter and represented over 40% of all acquisitions, with particularly strong activity from inter-regional investors who represented 26% of all European investment. Their purchases totalled 鈧�6.9 bn in Q2 2013, a 19% increase on Q1.'
'Their main target remained the UK market which accounted for 55% of their investment, followed by Germany, France and Italy. On a net basis, they have increased their exposure to the European market by 鈧�2 bn - the only investor group to consistently show positive net investment since 2010. We now see a wider range of investors, not only from the US and Canada, but also new sources with Chinese institutions entering for the first time.'
