Industrial Property Investment Surges in Europe

Industrial Property Investment Surges in Europe

Commercial News » Europe Commercial News Edition | By Francys Vallecillo | May 28, 2013 10:15 AM ET

The European property investment market reported strong numbers for the opening quarter of 2013, led by a 77 percent increase from the previous year in the volume of deals in the industrial sector.  

In total, the European commercial market had an investment volume of €32.7 billion during the first quarter of 2013, a 15.7 percent increase from the previous year, according to new data from Cushman & Wakefield.  

The EMEA market posted annual volumes of €136.7 billion at the end of the first quarter, a 4.4 percent increase from the previous year, supported by more debt and more equity in the market.

The industrial market helped lead the way, as the industrial market share rose from 8 percent in 2012 to 11.4 percent, the highest since 2010, the firm reports

"This was supported by deals in Central Europe, France, Germany and the Netherlands in particular," Cushman & Wakefield reported. "But there is an increasingly positive stance among investors towards the sector in general as it is seen as a potential winner from the growth of online retailing as well as demand for greater efficiency in the supply chain."  

Core European markets continue to see the majority of the demand, with the U.K., Germany and France investment volumes up by 32 percent from last year, according to the research firm. 

"A subtle change is happening in the market however, with the core countries maintaining strong interest and a high market share but more risk-taking also emerging as well as increased interest in diversifying," Jan Willem Bastijn, C & W's EMEA head of capital markets, said in a release.

"What's more, in seeking out larger lots such as quality shopping centers, investors will increasingly go where the stock is - leading to more activity of late in Central Europe for example."

The firm expects an investment volume of €136 billion for the year, a 4 percent increase from 2012, with increased interest from opportunistic investors.  

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