Top trends in facilities management – how society, demographics and technology are changing the world of FM’- is intended to help occupiers think through how they achieve their strategic goals, through their real estate and facilities.
European hotel real estate investment is up +5.8% year-on-year in the twelve months to Q2 2018, totalling €21.0 billion for the period. Liquidity has increased in most key European markets and sustained investor demand continues to put pressure on yields. Some of the key highlights include: In the twelve months to Q2 2018, €8.2 billion was invested into UK hotel real estate, up +95.1% year-on-year; In H1 2018, the German hotel transaction volume increased by +5.8% year-on-year; Sustained demand for hotel stock in the Netherlands pushed the deal volume beyond €1.8 billion for the twelve months to Q2 2018; Yields in both Lisbon and Porto have fallen amid greater investor appetite for hotel assets in Portugal; and Brussels has experienced a fall in yields as investor confidence in the market returns.
European industrial and logistics investment remained strong in the 12 months to June 2018. The 14% (Logicor adjusted) increase in volumes to €31.3bn continued the momentum after four record years in 2014-17. Volumes for the 1H18 were 8% higher Logicor adjusted YoY, although the 2Q18 did see a 12% fall from 1Q18. The best performers were Italy, where adjusted 1H18 volumes more than doubled, the Nordics (43% higher) and Spain (up 8%). Core CEE also increased 24%. The UK, the largest market, saw a 7% fall to €4.1bn and Germany was flat at €3.2bn. Capital inflows into the European industrial sector reached €31bn in the 12 months to June 2018, a 22% fall YoY, but a 12% increase adjusted for Logicor in 2Q17. This was partly driven by the €2.4bn takeover of Gazeley by GLP in 4Q17, but inflows in the 1H18 alone were 5% higher at €14.4bn. Although inflows from Asia fell to €3.3bn in the past year, adjusting for Logicor showed a 16% rise. There was also a 7% increase in domestic volumes to €17bn and a 27% rise in North American inflows. European cross border activity was also up 5%.
The CBRE 2018 Europe Real Estate Market Outlook provides insight on the key trends our experts think will affect the European property industry over the next 12 months. Key takeaways: Positive economic environment for most of Europe through 2018 to 2019 The prospect of higher long-term interest rates will start to pose a challenge to property pricing Continued strong growth in assets under management will put pressure on investors to deploy capital Another strong year for office-based employment growth in 2018 Growth in appetite for flexible offices will permeate across European markets Retailers increasingly focused on getting their city strategy correct. This will support rental growth at the prime end of the market Very strong demand growth has cut the availability of large-scale modern space, producing capacity constraints in some of the main European logistic hubs. Coupled with strong e-commerce relate growth this will support further rental increase The evolution of the residential sector will be supported by the sheer quantity of capital available for real estate investment in 2018, increasingly through development in order to build scale Stock shortages and premium pricing in gateway cities for the hotel sector will encourage investors to look further afield at secondary and niche opportunities A key feature in 2018 will be operator consolidation across Europe in the alternatives sector. This will present real estate investors with new partnership opportunities as well as enhancing covenant strength.
European Real Estate Investment Robust in H1 2018 An investment volume of €68.5bn in Q2 2018 propelled European volumes to €290bn for the trailing twelve months. This is up 4% on same period last year, to €290bn for the trailing twelve months.