Western Europe | Retail

Property Report Q3 2011

Demand focused on prime locations - November 2011

With the slowdown in consumer spending the outlook for retail has become more challenging. Nevertheless, the prime segment holds up well in terms of both footfall and turnover.

Prime rents have mainly risen in 2011. Retail has maintained its attractiveness for investors thanks to its characteristics as a more secure asset in the current uncertain economic environment.


Economic outlook has deteriorated significantly since Q2 2011

- Even core economies have slowed down significantly in the second half of 2011

- Private consumption recovery was prevented by austerity measures


High-street retail remained resilient

- Ongoing strong demand lead by foreign retailers

- Since last year, prime rents have risen in Germany and signifi cantly in Central London

- A general stability in rents is expected for 2012


Retail investment volume still rising, though at a slower pace

- Investors favour Germany amongst core European markets

- The UK is slowing down, but Central London holds up well

- Yields for prime assets are currently stabilising

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Richard Malle
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