European investment totalled €48.4 billion in Q3 2014 - a substantial 27% increase on Q3 2013 and 4% higher than the previous quarter.  For the year-to-date, total investment has reached €133 billion compared to €105 billion for the first three quarters of 2013, an uplift of 27%. The performance of Irish and Spanish investment markets was particularly impressive in Q3 2014.  Ireland achieved its highest total ever this quarter with €1.6 billion, surpassing the previous high in Q3 2006 of €1.5 billion and in Spain, the €3.5 billion invested in Q3 2014 was the country’s second highest quarter on record.
CRE investment activity in other “recovery” markets was also strong in Q3 2014, with the Netherlands (35%), Italy (40%) and Portugal (54%) all recording significant year-on-year increases. The core markets of UK and Germany continue to show strong growth, with both countries recording increases of over 20% compared to both the previous quarter and Q3 2013. In both countries investors are increasingly active outside of the major centres – London and the “Big-5” German cities – to the benefit of regional markets.
In Hungary year-to-date (YTD) investment volume reached EUR 379 million at the end of Q3 2014.  This compares with EUR 271 million transacted in entire 2013. While in H1 there was momentum for retail investments, office sales significantly increased in Q3. Industrial sales activity followed pattern most recently. Market share held by Hungarian purchasers reached an all-time high with 35% in YTD turnover on the back of increased activity of local funds. Prime yields are quoted at 7.00% for retail (flat), 7.25% for office (-25bps) and 9.25% for industrial (-25bps).
“CBRE is still expecting further increases in investments in Hungary. So far the market has been dominated by equity driven purchases, with the expansion of financing possibilities in the future even greater transactions become conceivable, so that the volume may increase. In the real estate investment market there are no signs of anxiety about the future economic slowdown of the Eurozone", Gábor Borbély, Head of Research and Consulting at CBRE Budapest added.



CBRE Hungary