Resilient Growth

Office investment volume at €10 billion shows an encouraging upturn of +10% growth compared to Q1 2024. Retail at €9 billion continues to progress at +14% (vs Q1 2024) and may grow further over the year. Logistics at €8.1 billion is lower (-8%) though still shows a market share of 22%, above its 10-year average. Hotels (€5bn), the leading asset class by volume growth throughout 2024, slowed in Q1, though market share of 14% remains good.

Foreign Capital & Geopolitical Considerations

Foreign capital at €14.6 billion is around 41% of all investment. European investment (+35% vs Q1 2024), maintains a leading position. American capital dropped back in Q1 (-25%). American investors, historically, are early movers, taking advantage of pricing situations of the sort that emerged end 2024. They may have deployed capital, awaiting new opportunities. The complicating factor is geopolitics. It remains to be seen whether the developing trade situation will deter further investment.

Yield Stability

Prime yields across all asset classes have maintained stable since Q4 2023. Some cities show compression signals for retail such as in Central London (2.75%) and Paris (4.00%).