REAL ESTATE VALUES CONTINUE TO TREND UPWARDS IN Q1 2015
- Industrial Best Performing Asset Class For Fifth Consecutive Quarter -
London, 3 June 2015 – Commercial property values across all asset classes in Europe grew for the seventh consecutive quarter, edging CBRE’s All Property Capital Value Index up 1.1% in Q1 2015, according to CBRE’s latest European Valuation Monitor.
Over the quarter, Germany, the UK and the Nordics were the strongest performers at the All Property level, with values rising by 1.7% in Germany and 1.6% in the UK and Nordics. Values in Southern Europe also picked up (+0.6%), driven largely by the industrial sector (+1.2%).
For the fifth consecutive quarter, Industrial was once again the best performing asset class, seeing growth of 1.7%. Retail saw the next biggest increase, rising by 1%, followed by offices which grew 0.8%.
Office and retail values in Central and Eastern Europe (CEE) and the Netherlands continued to slip, by 0.6% and 1.4% respectively. Falling values in CEE were attributed to new supply in the region competing with older stock, resulting in downward pressure on the value of existing real estate.
Matthew Edmonds, Senior Analyst, EMEA Valuation and Advisory, CBRE commented:
“Once again, there was compression across the full range of yields as investors continue to seek opportunities further up the risk curve. Prime assets are still the highest in demand, but the group of assets with higher equivalent yields compressed noticeably, confirming growing interest in more opportunistic and value-add properties region-wide.”
