Investment in Commercial Real Estate Hits Record in Europe with Some “Help” from Portugal

15 February 2019

The volume of investment in commercial real estate in Europe reached a record high of 312 billion euros in 2018, up 0.3% compared to the previous year (€311 billion). Portugal and Spain were the fastest growing countries, surging by 57% and 54%, respectively.

The report by the real estate consultancy CBRE concluded that Portugal, Spain, Poland, the Netherlands and France saw record levels of investment in 2018.

“In Portugal, transactions involving some office portfolios, large shopping centres, including the Dolce Vita Tejo, as well as the insurance company Fidelidade’s real estate portfolio, which was mainly composed of residential properties, leveraged the volume of investment in these sectors,” CBRE said in a statement.

Germany also had its second highest year for investment: 77 billion euros, 5.9% more than the 73 billion euros in 2017.

In the UK, total investment volume fell by 6.5% in one year, “as investors grew more cautious due to geopolitical uncertainties,” the CBRE concluded.

According to the consultancy, “accommodations were among the most popular sectors for investors in 2018.” “Hotels and alternative sectors reached record investment volumes of €22 billion and €21 billion, respectively (…). The residential sector also saw record investments of 50 billion euros, 22.4% more than in 2017, leading the sector to consolidate its position as the second largest asset class, surpassing retail for the first time.

However, offices remained the most attractive asset, with total volumes in Europe reaching €127 billion, 6% more compared to the previous year.

Original Story: Idealista

Photo: CBRE

Translation: Richard Turner