Despite moments of uncertainties, supportive economic conditions this year provided a favorable environment for real estate to continue recovery, now reaching €176.6bn.
The European market landscape confirmed a broad-based recovery this year. Total CRE volumes grew by +9% reaching almost €177bn. Momentum is characterised by an upward trajectory across the entire asset spectrum.
Office investment at almost €47bn, is demonstrating solid progress back from its low point, with the highest growth rate of all assets at +13% (y.o.y). Strong investment activity in Q4 drove Logistics up to €45bn, notably supported by an ongoing appetite for portfolio acquisitions. Retail (+5%) and hospitality (-4%) assets continued to attract solid interest.
Domestic capital (+13%) dominated the market to 60% share, while main foreign buyers (Europe cross-border and Americans) have maintained stable levels of activity.
Prime yields remained broadly stable. While market demand has yet to reach sufficient levels to compress yields universally, the end of the monetary tightening has reduced downward pressure, supporting yield stabilisation.
