14.09.10
European retail investment activity reached €15.7 billion in H1 2010, with investor demand expected to remain strong into H2 2010. This is a 15% increase on the €13.6 billion reported in H2 2009. Retail was the only sector in the European commercial real estate investment market to see a rapid increase in cross-border flows. Cross-border investment accounted for 40% of the market in H1 2010, with intra-regional buyers the most active. Germany, France and Poland benefited most from this revival. Increase in shopping centre activity and strong cross-border demand drove the average size of retail transaction up to €27.5 million, compared to the average of €21.4 million in 2009 as a whole.
The CEE region as a whole saw only a slight increase in retail investment in H1 2010, although the number of deals increased to 24, compared to 25 deals in 2009 as a whole. As was the case last year, investor interest continued to concentrate on the Core CEE markets, with Poland in particular attracting growing investor demand. While investment activity by cross-border buyers in the retail sector in H1 2010 amounted to approximately 100%, all deals in the Russian and Ukrainian retail sectors were transacted by local buyers.
Darrell Stanaford, Managing director of CB Richard Ellis in Russia, comments: "Vacancy in the retail sector is very low. Therefore, it’s high time to develop new shopping centers. Investment in 2011 in Russia will be 50%- 50% international and Russian investors, with most activity in retail premises and offices of good quality in the center".