Investment in European retail fell 40 percent in 2023 compared with 2022, to €26.2 billion, yet investor interest in retail assets is slowly gaining more traction.

BNP Paribas Real Estate says retail’s investment market share grew to 20 percent in the fourth quarter of 2023, 4 percent higher than it was at the end of 2022, making it the second-least sector to be affected by negative sentiment after hotels. “This level has not been seen for five years,” says Patrick Delcol, head of European retail at BNP Paribas Real Estate.

Investment in retail warehouses in the largest European countries — France, Germany, United Kingdom, Italy, Spain and Poland — came to €8.5 billion during 2023. The segment, although down 28 percent on 2022, showed the greatest resilience among the retail subsegments. It accounted for 50 percent of overall investment in retail assets and is proving increasingly attractive to investors, says BNP Paribas Real Estate.

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