Motivated sellers are finding that the buyer pool for European real estate is gradually returning, says Savills.
The advisory firm says the most active buyers this year will be French property-investment funds, European insurance companies, Middle Eastern investors and U.S. private equity firms. Savills’ stronger outlook for 2024 is based on an expectation that European interest rates will start to drop this year.
For core and core-plus investors, the firm has picked prime logistics assets in the United Kingdom, Germany, the Netherlands, France and Spain as key targets, given their robust rental growth and index-linked rental structures. Prime CBD offices should also be on core investors’ radars, as should multifamily in Southern Europe and certain retail parks that are anchored by large supermarkets.
Value-add investors, meanwhile, are being advised to focus on older CBD offices for refurbishment in undersupplied markets to capture rental uplift, such as Ge
