European Grocery Real Estate Attracts Investor Appetite
The European grocery real estate investment market is gaining momentum with growth in investment volumes and increased market share.
The European grocery market is the largest retail sector in Europe, estimated at €2.0 trillion in sales in 2020. While it benefits greatly from the daily needs of growing populations, allowing it to outperform various retail categories, the overall revenue growth is still closely linked to consumers’ purchasing power. In times of economic growth, stronger disposable incomes offer retailers opportunities to introduce new higher-margin products and services, leading to higher growth rates. During periods of uncertainty, consumers generally focus on affordability, which slows overall revenue growth, but rarely leads to a decline. In the next five years, affordability, sustainability and quality are predicted to be the key drivers of grocery consumption in Europe.