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Non-Residential Investment in Europe Hits Highest Since 2007, Madrid Tops YoY Increase

4/12/2014 – El Mundo

Latest report by BNP Paribas Real Estate shows that non-residential property investment in 14 main Western European cities (like London, Paris, Berlin, Hamburg, Frankfurt, Munich, Brussels, Milan and Madrid) totalled at €48.6 billion at the end of the third quarter of 2014, going up 16% in year-on-year terms. The highest upsurge was registered in Dublin (up 202% YoY) and Madrid (up 180% YoY).

In the first three quarters of the year, cumulative investment figures marked the highest levels since 2007, not seen during whole years 2008, 2009, 2010 and 2011. Apart from Milan and Lisboa, the volume exceeds the last-five-year average in all the examined cities. When it comes to overseas investment, American investors have grabbed a bigger market share than the Europeans, also for the first time since 2007.

Global investment strikes mainly liquid and core assets, however value-added and speculative transactions also come into fashion. During the discussed period, in half of the 14 metropolises there has been a decrease in prime returns.

By segments, offices were the top pick, crossing annual average in all cities but Lisboa, where it stood still. In turn, retail assets gained popularity in Paris, Dublin and, above all, in Madrid.

 

Original story: El Mundo

Translation: AURA REE

Photo: Chema Moya