Investment into the commercial real estate (CRE) market totalled nearly €56 billion in the second quarter of 2015, up 15% on Q2 2014, according to the latest figures from global real estate advisor CBRE. Although the rate of year-on-year growth in investment activity has slowed slightly compared with Q1, it is still the highest Q2 total since 2007.
Spain, Portugal, Finland and Norway experienced an exceptional increase in investment levels, each more than doubling on Q2 2014. Germany also had a strong quarter with investment of €12 billion, up 62% on Q2 2014.
Although the overall market remains active, a lack of product, rather than a lack of demand, is causing markets in Central and Eastern Europe (CEE) to show relatively low levels of investment, particularly in the retail and industrial sectors. There is also some level of caution being seen in the CEE office sector due to new supply coming into the market.
Investment turnover in the UK was up 10% on Q2 2014 when measured in euro, but this increase was almost entirely due to the exchange rate shift; in sterling the total was virtually unchanged from Q2 2014.
