
Spotlight: European Office Value Analysis – Q2 2024
"European office yields remain stable at 4.9%, as pricing expectations begin to align"
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"European office yields remain stable at 4.9%, as pricing expectations begin to align"

"The market seems to be bottoming out in terms of activity levels and pricing. European real estate investment volumes are estimated to reach approximately €44.5bn in Q2 2024, an 18% increase from the previous quarter. The investment volume for the year's first half is likely to exceed €74bn, roughly in line with H1 2023."

"With economic conditions brightening, the investment market has demonstrated a marked improvement in the first quarter of the year, even as the occupier market remains muted"

"The investment market appears to be thawing"

"Navigating the new data-centric frontiers"

"The imperative to address sustainability within the data centre realm has never been more pressing. In spite of the impressive 'greening' improvements made by the industry over the past decade, customers, regulators and investors are increasingly demanding greater sustainability efforts."

"In 2023, the global data centre M&A market experienced a slight decline in value, totalling $36.6bn. However, with its mission-critical role and strong customer dependency inherent to the sector, data centres appear well-positioned to weather uncertainties."

"The European data centre market is expected to expand rapidly, propelled by a 31% compound annual growth rate (CAGR) in international bandwidth usage and a 15.9% CAGR in the AI sector from 2024 to 2030."

"Savills Research and Savills Investment Management recently conducted a European Living Investor Survey, with 63 respondents who collectively have over €700bn in real estate AUM, to gauge investor sentiment and expectations for the Living and Hotels sectors."
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"Construction costs for a data centre increased by 6.5%, reaching an average of $9.1m per MW (€8.4m) across Europe. Zurich is still the most expensive market in Europe."