Following a challenging 2020, the retail sector is continuing to move toward a new model
In Q4 2020, the European retail investment volume amounted to €10 bn (–41% y-o-y). Even though this is the lowest Q4 recorded since 2009, it is not so far from the 10-year average (-14%).
The performance in 2020 of each country reflects its pre-Covid profile. However, a common trend exists: the share of retail warehousing in total retail investment was dominant in 2020 in many countries, showing the strong interest for this sub-sector by investors.
The prime retail market in major cities of Europe is highly dependent on the luxury sector and the spending of international tourists, whose numbers plummeted in 2020. It may last a few years, as international tourism is not expected to return to its pre-Covid levels before 2023.