European retail space 2020: Rising yields and fewer transactions

In a Europe-wide survey of transaction volumes, yields and rental prices of retail properties in 2020 in 31 locations, Catella Research has come to a mixed conclusion. Transaction volumes have increased in five European countries compared with 2019, whereas transaction volumes have declined across Europe compared with 2015 — with the exception of Austria and Switzerland. Yields for shopping centers range from 4.2 percent (Denmark) to 7.5 percent (Latvia) and are highest in the United Kingdom and the Baltic States. Since COVID-19, shopping and consumption behavior is no longer necessarily tied to high-street stores. For 2021, Catella Research expects property values to come under significant pressure, as investors increasingly lose interest in the “retail” asset class.

Thomas Beyerle, head of research at Catella Group, said, “The retail asset class is under enormous restructuring pressure throughout Europe. Although the current downward trend came with notice at least