Europe

MarketView: European Retail Investment

Q2 2009

Investment activity in the European retail market remain subdued throughout H1 2009. However, due to further falls in investment in other sectors, the retail share increased to 35%. This compares with an average of 26% in recent years.

The restrictive debt market has shown little sign of easing just yet and difficulties in getting finance in place remain in most markets. The negative impacts of the credit crunch have therefore continued to affect the market, changing the type of retail properties traded and the mix of players active.

In contrast to recent years, very few large deals took place in H1 2009, with the average size of retail transactions falling to only €23 million.

Restricted financing was in part to blame for the lower levels of shopping centre investment too, and in-turn negatively impacted on the level of cross-border activity.

International investment fell to only 22% of the total and was almost completely concentrated in the shopping sector segment of the market.

Author(s): several

Source: CB Richard Ellis

Published: 25.09.2009