Momentum continued in Q1 2021 across EMEA

The Industrial and Logistics sector continues with strong momentum while large scale office transactions have slowed in European investment volumes, as many countries saw overall activity halve in comparison to Q1 2020 notes Colliers, leading diversified professional services and investment management company, in its latest EMEA Markets Snapshot Capital Markets Q1 2021.

“The Industrial and Logistics sector continues to thrive with falling yields in almost all markets and premiums being paid for portfolios. Investors are willing to go up the risk curve in this sector, although some investors are showing initial concerns to pricing and whether developers will push rents far enough in a falling yield cap rate environment,” Richard Divall, Head of Cross Border Capital Markets, EMEA at Colliers, said.

Investment into direct European Real Estate reached €51 billion, a 35 percent fall in Q1 2020. However, it is worth noting that Q1 2020 was the second-highest Q1 figure posted in the last 10 years, and the figure masks a range in performance across countries.

Momentum returned to Poland with €1.27 billion in total investment volume in Q1 2021, the third-best first quarter after Q1 2018 and Q1 2020 (preliminary results). The Industrial and Logistics sector continues to attract strong Investor interest with yields continuing to compress.

“58 percent of total volume in Q1 2021 was allocated outside of Warsaw, driven by logistics deals for a total of €350 million,” Piotr Mirowski, Senior Partner, Head of Investment Services, Colliers, said.

Last quarter showed that liquidity is returning to the office market, which can be confirmed by the number of transactions – 11 separate deals with 22 assets across Poland. Several office transactions are expected to close in Warsaw in Q2 2021 as Investor sentiment towards the office sector returns.

(WBJ)