In the first half of 2013 the total commercial investment volume in our survey area was close to €50bn, about 3% higher compared to the same period last year.
Investment activity in the peripheral markets increased by 19% pa compared to 2% pa increase in the core markets.
■ The top 3 markets of UK, Germany and France once again accounted for 76% of the total investment volume of the 12 countries surveyed.
■ The improved investment activity that was evident in the peripheral markets was supported by cross border investor demand, accounting for about 60% of the total volume in this region in H1 13.
■ The majority of investors are still chasing prime opportunities across all market segments. The scarcity of prime shopping centres has led to reduced retail volumes (-11% pa) across our study area in the first half of 2013. Industrial investments increased by 22% pa.
■ The prime yield differential between core and peripheral markets has started narrowing mainly led by yield compression in Ireland. The average yield in our area is at 5.3% for prime CBD offices, at 5.9% for prime shopping centres and at 7.5% for prime logistics sheds.
Source : Savills