Investment in European retail property has hit its highest level for three years, with the asset class clearly outperforming other sectors within the region's commercial real estate market.
Figures released by CB Richard Ellis (CBRE) has revealed that total investment in retail property rose four per cent quarter-on-quarter to reach EUR 12.2 billion. CBRE noted that this was the best performance since the fist three months of 2008.
Of the EUR 26.7 billion transacted in European commercial real estate during the first quarter of 2011, retail turnover made up 45 per cent and investment in the quarter was 20 per cent higher than the five-year average.
This, the consultancy noted, was driven in particular by two primary markets. The UK and Germany together accounted for 70 per cent of the investment total.
As a result of the strong performance, CBRE said that pension and sovereign wealth funds are becoming increasingly keen to add to their exposure in the retail sector.