REAL ESTATE VALUE GROWTH DRIVEN BY CORE WESTERN EUROPEAN MARKETS IN Q3 2015
- Industrial sector best performer in Q3 -
Commercial property values across all asset classes in Europe have risen by 1.8% in Q3 2015, with core European markets of Germany, the UK and France driving value growth, according to CBRE’s latest European Valuation Monitor.
During Q3 2015, Germany and France were the best performing countries at the All Property level, rising by 2.4% and 2.1% respectively. Values in Southern Europe and Ireland also rose +1.5%, driven by improvements in the Office sector (+2.5%).
Across Europe, the Industrial sector was once again a lead performer with value growth of 2.6% on Q2. Offices saw the next biggest increase, rising 2.3%. Retail grew by 0.8%.
All property values stabilised on the quarter in the Netherlands, where only the office sector saw values fall in Q3; the Industrial and Retail segments saw modest increases. In CEE, Industrial values rose by 2.8% on the previous quarter.
We have seen yield compression across the full range of asset classes for the fourth consecutive quarter. This serves as evidence that the investor pool in Europe is continuing to move for all types of asset class, and is moving further along the risk curve. However the yield spread between top tier and peripheral assets increased as the prime end of the market retains the focus of investors.