European Real Estate Investment Volumes Q1 2022

Investment in Europe posted second strongest Q1 ever:

Commercial real estate investment volumes reached €80bn in 22Q1, up 31% on 21Q1, and therefore the second strongest start of the year after the €90bn we’ve seen in 20Q1. This quarter’s performance highlights again institutional capital’s ongoing focus on the European real estate market. However, an increasing cost of capital throughout markets will put further reliance on rental performance as a key factor in value changes we may see in the future.

Record Q1 levels of investment were recorded in Industrial sector:

The Industrial market was particularly strong in Norway, Spain, Germany, Italy, the Netherlands, and the UK, all posting record Q1’s ever in Industrial. Investor interest in Industrial is underpinned by expectations of rental growth resulting from low vacancy rates and continued brisk occupier demand, much of it fueled by e-commerce activity, in most of Europe’s markets.