MAIN INVESTMENT MARKETS IN EUROPE
Q3 2017: MARKET HOLDS UP WELL WITH PROPERTY YIELDS HARDENING
Total commercial real estate investment volumes in Europe remain high with € 167bn invested between Q1 and Q3 2017, representing 8% growth over the same period in 2016. Volumes have not reached the 2015 peak however, suggesting that the cycle is likely to be at a point of inflexion. With € 57.8bn transacted over the three quarters, the 15 Western European markets monitored within this report posted a 5% increase compared to Q1-Q3 2016. Office deals continued to be the backbone of activity, sustained by a growing occupational demand for office space over the last three years across Europe. They represented 71% of the activity in our 15 markets, and are illustrated by trophy deals such as Fenchurch Street 20 for €1.4bn and the "Walkie-Talkie" for €1.3bn in the City of London plus the acquisition of half of the Duo towers in Paris for more than €500m. Retail investment volumes dropped by 20% whilst logistics investment grew by 25%.