Food and grocery the new core in retail property investment
The food sector is becoming the new core in retail property investment, according to Savills. Last year, for the first time, investments in supermarkets, hypermarkets and food discount stores accounted for a record 21 percent of total European retail activity, up from a five-year average of 7 percent. Despite the decline of retail sales growth in 2020 (from 3.9 percent in 2019 to 1.7 percent in 2020), food and grocery sales increased by 7.5 percent, and they are expected to continue to rise by 2.2 percent per year over the next five years.
Germany was the largest food and grocery investment market at €3.1 billion ($tk billion) last year, followed by the United Kingdom at €1.7 billion ($tk billion) and Spain at €675 million ($tk million). The countries that experienced the sharpest rise compared with their five-year average were Germany (217 percent) and Spain (145 percent). The international real estate adviser says that investor competition has led to yield compression