Real estate investment plummets across Europe - retail falls off a cliff, but hotels stay buoyant


CBRE has published research in the Estates Gazette on 13 August 2019 showing that major European cities have suffered a sharp fall in real estate investment during the first half of 2019, compared to the first half of 2018.

Although London has suffered, with real estate investment falling by about a third from €15.84bn to €10.56bn, major cities elsewhere in Europe have fared even worse. CBRE report that the worst affected among Europe's largest cities were Madrid, where investment volumes fell by 53% to €1.91bn and in Munich, with a 45.8% drop down to €2.05bn.  That will doubtless be a topic of discussion at EXPO Real - the Teutonic answer to MIPIM - which is being hosted in Munich in October 2019.

Investment in retail real estate has been particularly badly hit, falling by 41% from €26.98bn to €15.94bn.

Those familiar with the counter-cyclical nature of hotel investment will not be surprised to see hotels as the sole real estate sector in Europe bucking the trend, with volumes of €11bn in the first half of 2018, creeping up by 2% to €11.22bn in the first half of 2019.

Maybe with all the doom and gloom around Brexit and trade wars, we could all do with a holiday...

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Between January and the end of June, investment in property in London declined by 33.3% from a year earlier, to €10.56bn (£9.81bn). In Madrid investment volumes crashed by 53% to €1.91bn, while in Munich volumes collapsed by 45.8% to €2.05bn, according to CBRE.
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