Investment into European real estate reached €86.5 billion in the first half of 2024, with growth from 2023 levels led by the hotels and living sectors, according to data from CBRE.
European real estate investment in the first half of 2024 was up 10 percent compared with the same period in 2023.
The hotel sector’s Q2 2024 performance was its strongest quarterly performance since Q4 2021, with investment reaching €5.4 billion in Q2. For the first half of the year, hotel volumes rose 62 per cent to €9.9 billion, whilst the living sector saw volumes increase 6 per cent to €18.3 billion.
This was as Office investment grew by just 1 percent to €18.7 billion, Retail edged up 1 percent to €13.5 billion and Industrial saw volumes reach €16.1 billion, up 7 per cent year-on-year.
Eight out of the ten largest geographic markets saw total real estate investment volume growth in the first half of the year. Germany and the UK saw increases of 15 per cent and 10 per cent respectively. The major continental European regions all saw growth compared with the previous year, with CEE up 21 per cent, the Nordics up 26 per cent, Benelux up 71 per cent and Iberia, which had a very strong 2023, up 2 per cent.
What they said
Chris Brett, managing director, European Capital Markets at CBRE said: “It is clear that investment sentiment is starting to improve across Europe and the uptick we have seen supports CBRE’s forecast of 10 per cent growth in market volumes for 2024. The resurgence in activity has been driven by a stabilisation of asset prices, with prime yields across all major sectors remaining flat since March. As the market continues to recover, buyers and sellers will start to become more comfortable with pricing, which will further support the more positive market dynamics we are starting to see.”