Wednesday, Dec 7, 2022
International Finance
Wealth Management

Europe a hotbed for commercial property investment, reveals Knight Frank research

Europe, Finland, investment, property, commercial, UK, Hungary, Romania, The Netherlands, Czech Republic
Commercial investment in Europe is thriving as investors are beginning to look toward locations outside of populist countries

Investment volumes are on track to beat 2016’s numbers, according to Knight Frank research in the European Quarterly, Commercial Property Outlook (Q3 2017).

A total of €47.4 billion was invested in European commercial property in Q3 2017 – a 13% increase on the same quarter of 2016. Inspired by the strong performance in Q3, which took European commercial investment volumes for the first three quarters of 2017 to €144.4 billion, up by 3% year-on-year, commercial property specialists, Savoystewart.co.uk sought to uncover the countries stirring the most interest in investment in Europe.

Savoystewart.co.uk found several countries experienced a spike in commercial investment in 2017. Most notably in Finland, with a total investment of €5.6 billion, Q1-Q3 – a rise of 121.60% on figures from 2016. Hungary (89.90%), Romania (73.50%), the Czech Republic (43.30%) and Netherlands (41.70%) followed, with considerable increases measured.

Though missing out on the top ten for highest commercial investment volumes, the UK received a gargantuan €37.6 billion in commercial investment, Q1-Q3 2017, which accounts to a 2.80% rise on 2016. Recovery in UK volumes has been primarily driven by the sale of large assets in London to overseas buyers, particularly in Hong Kong, including a single €1.4 billion deal – the largest noted in Q3 2017.

The UK’s position as a strong contender in commercial property should not be overlooked. Particularly as other European locations experienced catastrophic falls in commercial investment volumes, the top three identified as Ireland (-58.30%), Sweden (-38.60%) and Switzerland – with an average -35.50% fall in investment figures.

Darren Best, managing director of savoystewart.co.uk, said, “This rise and fall could reflect how investors are beginning to look toward locations outside of populist countries; places which may offer a renewed energy and stability to commercial business in uncertain times.

I believe the top ten countries will certainly be commercial locations to watch in 2018. But what is also crucial to note, is that investment in commercial property in Europe is thriving, overall – and the UK plays a large part in that.”

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