European commercial investment volumes to reach €219b

European commercial real estate investment volumes are expected to reach €219 billion ($249 billion) by the end of the year, which is 22 percent above the 10-year average, despite being 13 percent down from 2018, which was the second highest volume recorded, according to Savills.

Sweden, where development activity is fueling the market with forward-funding opportunities, is expected to particularly stand out this year (+8 percent), while in Italy, the year-end investment volume should be in line with 2018. The lack of disposable stock continues to be the main challenge for investment activity. Additionally, ambitious pricing is often lengthening the process of closing deals.

Marcus Lemli, Savills’ head of European investment and CEO of Savills Germany, commented: “Demand for European property remains strong and continues to attract capital, 50 percent of it being cross-border. However, the slowing economy and geopolitical uncertainties reinforced a conscious focu