Investment in Europe's logistics and industrial property sectors remained strong during the first half of 2018, with Italy and the Nordics emerging as the best performers, the latest research by CBRE has revealed.
Investment volumes reached €14.2 bn in the first six months of the year, up 8% on the year-earlier period if the €12.25 bn Logicor deal with China's CIC from last June is excluded.
The best performers were Italy, whose volumes more than doubled; the Nordics, which registered a 43% increase; and Spain, which recorded a 8% increase in volumes compared to the previous year. By contrast, the biggest European market, the UK, registered a 7% fall to €4.1 bn, whereas Germany remained stable at €3.2 bn.
‘Investment was only lower in the first half of 2018 compared with last year before adjusting for Logicor, so the EMEA logistics sector remains strong and continues to generate substantial levels of interest,’ explained Mark Cartlich, head of EMEA industrial & logistics capital markets strategy at CBRE.
CBRE said North American investments rose 27% over the past 12 months to €5.6 bn. Inflows from Asia fell to €3.3 bn in the past year but when adjusted for Logicor showed a 16% rise.
‘There was a significant rise in activity from North American investors, demonstrating confidence in the market on a global scale, while domestic and cross-border investment also increased. We expect interest in the sector to be maintained throughout the remainder of 2018 from both international and domestic investors,’ Cartlich concluded.