Retail real estate market in Europe - statistics & facts

The retail real estate sector includes buying, selling, managing, and leasing of various types of retail properties, such as grocery stores, supermarkets, convenience stores, retail parks, power centers, high street retail stores, shopping centers, and malls. While a relatively small share of the commercial real estate market in Europe, retail real estate is crucial to the functioning of any city or town. With the coronavirus (COVID-19) pandemic still raising havoc across Europe, the retail sector continues suffering reduced footfall and consumer spending. Naturally, this unprecedented situation has affected the investment market, leading to investment portfolios in Europe losing 4.5 percent in value between the second quarter of 2020 and the second quarter of 2021.

Which are the largest retail real estate investment markets in Europe?

Germany, the United Kingdom (UK), and France are Europe’s largest retail real estate investment markets. In 2020, investment activity slowed down across almost all markets, except for the UK, Spain, Austria, Switzerland, and Spain. Indeed, according to investors, the retail real estate market will remain the least favorable in terms of investment prospects in 2022. A survey among EMEA investors found that 12 percent wanted to invest in the sector and that grocery shops, supermarkets, and convenience stores were the most popular property type. This is likely because these retailers were much less affected by the pandemic compared to high street retail. Investment attitudes also vary depending on their risk and return characteristics. Approximately 50 percent of potential investors were interested in core strategies, which are the most conservative type of investment and rely on stable income with low risk, whereas only seven percent were seeking development opportunities.

How much does it cost to rent high street or shopping center space in different European markets?

Renting space in a shopping center was most expensive in Frankfurt at 280 euros per square meter per month, followed by London and Dusseldorf at 209 and 180 euros in 2021. High street retail refers to retail properties located on the main streets of cities and unsurprisingly, popular luxury shopping destinations like Paris, London, and Milan have the priciest rents. Forecast figures show that rental growth will remain modest in the coming years, with Milan, Rome, Helsinki, and Berlin expecting annual growth of between one and 1.6 percent. As the coronavirus pandemic continues disrupting international travel, Paris and London, are forecasted to see a decline of 2.71 and 1.1 percent per year.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Apr 19, 2024

Key insights

Trailing twelve month capital value performance of retail real estate in Europe
20%
Five-year prime retail return on investment forecast in Milan
6.72%
Total retail real estate investment in Europe
40bn EUR
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Editor’s Picks Current statistics on this topic

Change in average high street and shopping center rents in the United Kingdom (UK) from 1st quarter 2020 to 1st quarter 2022

Retail

Change in average high street and shopping center rents in the UK 2020-2022

Leading mass-market prime high streets ranked by footfall in Europe in 2021 (in number of pedestrians on the sample day)

Shopping Behavior

Footfall of the leading mass-market shopping streets in Europe 2021

Leading luxury prime high streets ranked by footfall in Europe in 2021 (in number of pedestrians on the sample day)

Shopping Behavior

Footfall of the leading luxury shopping streets in Europe 2021

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Commercial real estate in Europe
Coronavirus: impact on the retail landscape in the U.S.
Coronavirus: impact on the retail landscape in the U.S.
Commercial real estate in the United Kingdom
Commercial real estate in the United Kingdom
Retail real estate market in the United States
Retail real estate market in the United States
Retail real estate market in Europe
Retail real estate market in Europe

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