A new report from CBRE shows that Investment into European real estate reached €157 bn in the first half (H1) of 2022 – the strongest ever first half of a year. This was driven by a very strong Q1, where total investment volumes reached €86 bn. Commercial real estate investment volumes reached €71bn in 22Q2, a decline of 9% on 21Q2. This brings investment volumes in the twelve months to 22Q2 to €387bn, still the second highest rolling twelve-month total ever, up 35% compared to the €287bn achieved in the same period last year.
Retail investment volumes are back to the levels we’ve seen before the pandemic, with H1 volumes up 52%, materially driven by the EUR2bn sale of the BBVA Bank branches portfolio in Spain.
The office investment market was stronger in H1 than the previous year, up 20% on H1 2021 but down 19% on Q22021. Investors are focused on prime sustainable assets and competition for these remains high. On the other hand, lower quality assets attract less interest at the moment as investors assess what capex needs are in bringing these assets up to sustainable standards.
Investment into the Industrial sector is down 8% in 22Q2 compared to 21 Q2 but still showing a positive trend for H1 (18%). Investor interest in Industrial is underpinned by expectations of rental growth resulting from low vacancy rates and continued strong occupier demand, in most of Europe’s markets. The Industrial market was particularly strong in 22Q2 in Belgium (521%), Italy (264%), the Netherlands (58%), France (50%) compared with Q22021’s Covid-suppressed levels.
In Moldova, a new report on the Development of the Real Estate Sector Analysis in the Republic of Moldova estimates that during the pandemic period, there were over 2500 real estate transactions worth over €270 ml across all sectors (commercial & residential).