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Investment volume was on the increase for Q3 2013 at £14.77bn, the highest since Q2 2007. YTD 3Q total was £35.07bn, higher than for the same period last year which was £26.65bn.
The shopping centre investment market remained robust during the first half of 2013, according to Knight Frank, and expect more trading during the second half of the year.
Upbeat sentiment drives double digit returns
Re-pricing to spur demand for well let secondary assets.
In the first three quarters of 2012, almost €4.8bn was invested in German retail properties and thus 42% less than in the same period last year.
With take-up of 2.6m sq ft in H2 the Berlin office market achieved an outstandingly good result, according to a report by BNP Paribas Real Estate.
The investment market for commercial properties in Germany saw a total investment volume of €9.4bn in the first half of 2012, 15% less than in the same period of last year, a market report by CBRE shows.
The brisk investment activities, particularly in the first half of 2011, have led to positive results for the German hotel investment market.
After a record year in 2011, the slump expected in 2012 has not yet affected the French logistics market, in which take-up has even risen slightly. However, take-up is likely to slow in the second half.
The letting activity in Ile-de-France remains moderate but the signs of recovery are strong in Paris where demand has doubled in the space of twelve months. In the CBD, some deals have again crossed the threshold of €800/sqm/year.
“Although the economic climate appears bleak, business activity in 2012 will be driven by more opportunistic strategies. The supply and demand situation is expected to become even more balanced this year with higher take-up of second hand properties. With the economy set to improve in 2013, new developments may become very sought after.”
In the absence of any speculative developments, the Grade A warehouses located on the North/South axis will be occupied at a steady rate. The prime rental values should consequently be maintained.
Direct real estate investments in the Roman market in 2011 were reduced by about one third compared to 2010. This negative resultwas formed substantially in the last three months of the year, when the market was essentially stationary.
“The decreasing levels of demand for office space in 2011 coincided with deteriorating economic sentiment. Only significant rental adjustments and incentives were involved in large scale lettings; we have seen 2012 begin stronger than the previous year”.
Q4 2011 was characterised by very scarce investment activity in the Milan real estate market.
In 2011 close to 415,000 sqm of GLA came on to the market. For the first time in recent years the difference between the volume of new space and the beginning of the year forecast is minimal, which shows that developers carry out the projects that are clearly considered to be feasible.
The first half of the year has been extremely active in many sectors of the Irish commercial property market with more transactions recorded in the six month period in some sectors than in the entire year last year and in some cases higher than the volume of transactional activity recorded during 2011 and 2012 combined.
As is generally the trend, the months of July and August were relatively quiet in the Dublin office market with few transactions completed in the period.
Another steady three months of office take-up in Dublin despite economic backdrop
The issues of depreciation and obsolescence have recently become more relevant for owners of Dublin office buildings.
While the economy currently is still shrinking, forecasts for 2014 depict a 0.5% GDP growth in 2014. This recovery is much supported by increasing foreign demand. The substantial economic growth in surrounding countries will drive exports and this will positively impact private investments.
“In a weakening macro-environment where interest rates are heading downwards again, we are expecting investors to become more aggressive on long-term let assets.”
The leasing activity in the Brussels office market slowed during the year. Overall 2011 take-up was 321.400 m² representing a 36% fall on the Brussels’ market five year average and down 33 % from 2010.
The activity recorded at mid-year (90,000 sq m) is in line with the average and offers a much better performance to the secondary markets as a whole than Brussels.
In line with most economies in Europe, Sweden’s economy has experienced a mild downturn in the last two quarters. However, Sweden’s solid public finances allows for a expansionary public policy in order to support the economy.
Occupier demand for quality offices in Moscow remains robust.
Despite the negative occurrences in the European economy and the lowering of USA credit rating, the typically ‘holiday’ month of Augustshowed high activity both from the tenants and the landlords.
2011 was a record year for investment in Russian real estate. €4.55bn was invested, which is over 1.5 times higher than in 2008, the previous record year.
Retail rents along Paris’ Champs Elysees remain the highest in Europe, according to Jones Lang LaSalle’s first report on Prime High Street Rents in Europe.
Central and Eastern Europe
Warsaw’s modern office supply has reached 4 million m2. The vacancy rate has gone up further, despite sound office demand.
A city based on business and knowledge, offering the perfect environment for investments
New significant projects arereshaping the retail landscapein major agglomerations
Completions on the rise for 2013. Eastern part of Poland catching up.