With a transaction volume of just over 3.48 bn € in the first quarter, office investments once again headed the asset-class ranking by a wide margin. All the same, the turnover total was around 10 % lower than in the comparable period last year. Nevertheless, it exceeded the ten-year average by 26 % and represented the fourth-best result in the past ten years. The main reason for the moderate decline was the shortage of large core products in the major locations. In the first three months of this year, only three single deals in the triple-digit million euro range were registered, as against six last year. A factor that needs to be taken into consideration is that a disproportionately high number of transactions were finalised just before the end of last year. Single deals have accounted for just over 2.87 bn €, which is 20 % down on last year's record result. The result obtained in the first three months must still be regarded as excellent, though, since it was the second-best opening-quarter performance ever registered. Portfolio sales were actually able to step up their turnover appreciably, more than doubling it to 611 m €. And: investors are ready to purchase assets outside the core segment, something indicated by the fact that around two-thirds of the transaction volume was realised in the core-plus and value-add risk classes.
Source : BNP Paribas Real Estate