Investment into European real estate reached an all-time high in 2021 with €359 billion entering the market up 25% on 2020 and up 8% on 2019, the previous record year, according to new research from CBRE.
Germany and the Nordics both posted record investment volumes with increases in 2021 of 39% and 44% respectively. Germany saw total investment volumes reach €110 billion, the highest amount ever recorded by a European country.
Most other major European markets saw higher full-year volumes compared to the previous year, including the UK (49%), Ireland (54%), Spain (33%) and Italy (13%). However, the rebound in volumes was not universal, with 2021 volumes down on 2020 in several markets including France (-9%), Portugal (-21%) and the Netherlands (-10%).
Hotel investment volumes continued to point toward a recovery, reaching €17.1 billion, 70% on the previous year and with no visible distress in the market.
The Office market remains the largest sector in Europe, with investment volumes reaching €111 billion in 2021, up 16% on 2020.
What They Said
Chris Brett, head of EMEA capital markets, CBRE, said: “We saw a strong rebound in investment volumes in 2021, surpassing the previous record set in 2019, and we are anticipating the positive momentum to continue.
The recovery has been supported by the low interest rate environment and strong economic growth. This has bolstered investor confidence, but rising inflation and the continued emergence of Covid-19 variants remain challenges.”