According to Savills research, European retail investment volumes reached €19 billion for Q1 to Q3 2024, marking a 6% increase compared to the same period last year. Luxury high street yields are the most favourable among retail investment properties.
In terms of sectors, high street retail represents 18% of total European retail investment volumes in Q1-Q3 2024, retail parks 28% and shopping centres 26%. As of Q3 2024, luxury high street yields remain stable at 4.4% compared to the previous year, while the European average prime shopping centre yield increased by 9 bps annually, and now stands at 6.3%. Mass-market high street yields also compressed by 4 bps annually, reaching 5.2%. The European average prime retail warehouse yield stands at 5.9%, reflecting a 4 bps decrease year-on-year.
The attractiveness of high street properties is highlighted by the recent acquisition by the Raiffeisen realitní fond, managed by Raiffeisen investiční společnost, a. s. The Fund acquired the iconic building housing Louis Vuitton at Pařížská 3 in Prague, Czech Republic, for which Savills has gained the property management mandate.
Based on deals signed since early October and those in the pipeline, Savills projects Q4 retail investment volumes in Europe to reach approximately €8.5 billion. This would bring 2024 year total numbers to just over €27.5 billion, a 15% increase on 2023 volumes.
