Real Estate for a changing world

At a Glance - European retail market - Q4 2022


Strong retail activity in an uncertain economic and geopolitical context

Retail investment 

  • Retail was the best-performing sector compared to the investment decline in office, logistics and hotel segments. In terms of investment market share, retail regained interest (16% of the total investment volume in 2022 vs 14% in 2021) compared to office (36% vs 39%) and logistics (22% vs 24%).
  • The retail segment maintained its 2021 level (+2.6%), despite economic turbulences that led to a weak fourth quarter (-42% vs. Q4 2021).

Occupier market: mass-market streets

  • Overall, a greater focus on quality over quantity characterizes the occupier market. Letting activity should remain resilient in 2023 and display a new equilibrium in volumes.
  • The strong recovery of international tourism and footfall helped retail sales to stay healthy in Europe despite the economic turmoil. Many retailers reported solid turnover 
  • Prime high streets remain attractive but still suffer from a turbulent economic environment.

Occupier market: luxury streets

  • The return of high-income customers in 2022 generated strong commercial activity in European luxury streets, illustrated by the robust results of the high-end brands in 2022.
  • The luxury industry, particularly resilient this year, was partly driven by a strong dollar, making European shopping more attractive. Moreover, this sector has absorbed the significant rise in prices by reinforcing the perception of “exclusivity” of the products.
  • This recovery in consumption for the luxury industry is also inducing sustained demand for “prime” locations in European high streets. This translates into an increase in rental values for several European thoroughfares in 2022.
At a Glance - European retail market - Q4 2022
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