On October 20, 2021, Colliers released the market snapshot for Europe, the Middle East and Africa, which saw investments in European property continue to gain momentum in Q3 with the return of big-ticket deals in major markets across the region.
According to the report, prime office assets located in the centers of national capitals remained the major draw for investors seeking secure repositories of value. Logistics assets remained a key area of focus amid steady growth in e-commerce and the supply chain constraints highlighted by the pandemic. While investors remain cautious on hard-hit retail and hospitality properties, activity is beginning to pick up in these sectors in markets like Spain. This uptick can be attributed to investors realizing that as holiday-makers and business travelers return, some hotel assets could be undervalued and offer a good investment opportunity now. Both retail and institutional investors continued to demonstrate a strong interest in residential and particularly build-to-rent assets in urban areas throughout the region.
Moving into Q4, Colliers predicts markets will remain active, with investors watching for any upsurge in COVID-19 cases in the winter months. Also, on the investment radar will be the outcome of coalition negotiations in countries that have held recent elections such as Germany and the Czech Republic, amid mounting scrutiny of investment in the residential market in cities such as Berlin.
“Investors clearly believe the tide has turned,” said Richard Divall, Colliers Director of Cross Border Capital Markets. “They are adjusting their strategies for a return to healthy economic growth and a focus on sustainable development that will shape regional property markets for the better in the years ahead.”