Real Estate for a changing world

Contact us
  • Choose your subject...
  • Human resources
  • Research
  • Media inquiries
  • Investors relation
  • Occupier solutions
  • Other


*Mandatory information must be entered in the information fields marked with an asterisk in data collection forms. If these fields are not completed, we will be unable to provide the services outlined above.


At a Glance - Main Investment Markets in Europe - Q1 2018


Q1 2018: flying start to the year for investment

The total commercial real estate investment volume in Europe reached €51.3bn in Q1 2018, 3% below the Q1 2017 result. This is a flying start to the year for the market especially since 2017 posted Europe’s all-time record for real estate investment. The 15 largest city markets monitored within this report actually posted a 2% increase compared to 2017, reaching €18.3bn.


The majority sector, offices, posted a stable share of investment (41%) despite a slight decrease of the volume over the quarter (-6%). The retail segment experienced a good first quarter in many markets, particularly in Belgium, Spain, Italy and Poland. The latter saw the sale of two portfolios and a shopping centre that totalled €1.7bn. The industrial & logistics investment volumes went down (-6%), which may give a directional foretaste for the upcoming year considering the extraordinary 2017 turnover in this sector.


The year started very well for the four main German markets (+50% on average) except for Berlin (-10%). This performance was led by single deals unlike the trend for portfolios from previous years. Central London remains the biggest European investment market despite a 42% drop compared to Q1 2017. The reason for decrease is not a lack of demand, rather a lack of trophy assets for sale. Central Paris improved compared to 2017 (+12%), led by strong interest in office investment (+18%). Brussels (+245%) moved up to 5th place in the city ranking thanks to two transactions over €300m: the Woluwe shopping centre and two office buildings. The levels of investment in Madrid saw a reduction which must be put in perspective considering the very good Q1 2017. The retail sector dominated the Madrid market notably thanks to the sale of Parque Corredor shopping centre (€200m). Vienna’s investment market (+58%) experienced a record level for a first quarter, led by the office and retail sectors. Milan’s investment market dropped (-35%) compared to a very high 2017. Amsterdam saw investment volumes drop by 65% whilst Lisbon increased by 54% with retail accounting for 90% of the turnover. Warsaw (+3%) registered a record level for a first quarter, again created by the retail sector. Lastly, Luxembourg market (-6%) was dominated by deals below €40m.


After reaching historically low levels at the end of 2017, prime yields stabilised in Q1 2018, for most European markets. The exceptions that continued a downward trend are Paris, Brussels, Bucharest and Prague. Berlin’s prime office yield remains unchanged at under 3%, making Berlin the most expensive European city for offices. Second place is shared by Paris and Munich.


At a Glance - Main Investment Markets in Europe - Q1 2018
PDF - 806Ko