Logistics and Multifamily outperform as investors seek sustainable income streams.

 
Copenhagen, 16 July 2020 – Total real estate investment in Europe reached €43bn in Q2 2020, representing a decrease of 39% on the same period last year, according to the latest data from global real estate advisor, CBRE. This brings H1 2020 investment volumes in Europe to €129bn, a 2% increase from €127bn for the same period in 2019. 

Whilst Q2 investment volumes fell significantly as the impacts of the Covid-19 pandemic were fully realised, investment volumes in Q1 2020 reached an all-time high in a number of markets, including the Nordics. This has ensured that H1 2020 investment volumes have remained in line with the previous year. According to preliminary figures, the total H1 2020 investment volume in the Nordics contracted by 4% y-o-y.

On a month by month basis across Europe, May was most severely impacted by the various Government-imposed lockdown measures and witnessed a significant decline in transaction activity. June saw a slight uptick as travel restrictions and lockdown measures began to be relaxed. This upward trend in volumes is expected to continue as Europe’s economy continues to recover.

Dragana Marina, Head of Research, CBRE Denmark commented: “Although the investment volumes for Denmark are still preliminary, we can already now see that the H1 2020 will be in line with or slightly above the volume recorded in the same period last year. This is indeed a very positive result and a strong indication of the amount of capital available to invest into the Danish CRE market. We remain optimistic and expect the market sentiment to further improve in the remainder of the year.”

At a sector level in Denmark (H1 2020), Logistics and Multifamily assets outperformed other sectors as investors sought stable income streams amid increased economic uncertainty. Consequently, Office investment is closing the gap with Multifamily, which remained the largest asset class. 

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please also visit our global website at www.cbre.com.