EXPO REAL 2016: Non-core European markets are experiencing a rise in cross-border activity and mega deals, according to Savills.
While cross-border investment volumes dropped in the core markets in the first six months of the year, they increased by 81% in Ireland, 20% in Itlay, 179% in Poland and 245% in Sweden.
“These non-core markets are all at an earlier stage of the current investment cycle,” said Eri Mitsostergiou, director of European research at Savills.
“With prime yields in most of the segments of these markets still above the European or core average and with potential for further yield compression, these markets are offering more attractive returns for investors.”
In terms of mega deals – those over €100m – Austria saw a 233% rise, Ireland 88%, Sweden 56% and Italy 58%. This was against an overall decline of 31% year-on-year across Europe.
“We project that in 2016 total volumes in the core markets of the UK, Germany and France, which have accounted for almost two-thirds of all investment activity, will be down by one-third this year,” said Mitsostergiou.
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