Record first half of year for European real estate investment

Investment into European real estate reached €152 billion ($152.5 billion) in the first half (H1) of 2022 — the strongest ever first half of a year — according to preliminary data from global real estate advisor, CBRE.

Commercial real estate investment volumes were up 10 percent from H1 2021 and exceeded the previous H1 record of €151 billion in 2018.

The record first half was driven by a very strong first quarter, where total investment volumes reached €84 billion ($84.3 billion. This was the second strongest first quarter, behind the record-breaking opening quarter of 2020.

Second-quarter volumes declined 11 percent to €68 billion ($68.2 billion), as increased borrowing costs and economic uncertainty slowed investment activity. Real estate pricing has been impacted by high inflation across the globe and central banks’ rate increases. The European Central Bank (ECB) is expected to increase interest rates for the first time since 2011 next week.