ALL REAL ESTATE SECTORS SEE FULL YEAR OF VALUE GROWTH IN 2014
London, 26 February 2015 – Property values across all asset classes in Europe grew for four consecutive quarters in 2014, the first time since 2007, driving CBRE’s All Property Capital Value Index to rise 4.3%, according to CBRE’s latest European Valuation Monitor.
The UK was the strongest performer in 2014 with values rising 12.9% on Q4 2013. Values in Southern Europe rebounded in the second half of the year to see a 3.6% rise year-on-year, and there were also positive levels of growth in France and Germany of 3.3% and 2.7% respectively.
The industrial sector was the best performing asset class with values rising 8.5% in 2014, with offices seeing 3.9% growth and retail 2.5%.
Central and Eastern European (CEE) markets continued to see property values fall quarter on quarter (-0.4% in Q4) led by a decrease in the office and retail markets. This is largely down to older stock coming under pressure from new developments in the region. However, industrials in the region saw an increase in values of 3.8% in Q4 and were up by 9.1% year-on-year.
Matthew Edmonds, Analyst, EMEA Valuation and Advisory, CBRE commented:
“Equivalent yields have compressed across the full spectrum of real estate quality for the first time since 2007, suggesting that investors are now looking at all sectors of the commercial real estate market and although their focus remains on prime they are increasingly considering assets further along the risk curve, moving into secondary and more peripheral markets.”