What: Retail may have been under pressure in recent years, yet Savills report has shown how retail real estate is one of the most resilient for its asset class with major investments during 2022.

Why it is important: Property specialist Savills said that 26.9 billion euros have been invested into the European retail sector so far in 2022, which is up 25% compared to 2021. Investment in shopping centres accounted for 27% of all the retail activity, compared to 14% for the same period last year.

Savills has also observed that there appears to be little change in expansion strategies despite the economic headwinds in Europe. Off-priced retailers and fashion retail investment is continuing with only a small drop in pace during Q3 of 2022.

Prime high street locations are being viewed more favourably due to footfall recovery and rent drops. Savills said on average, prime high street rents across Europe are 34% down on Q4 2019 levels, and they’re even down 29% in usually strong London. The report said that grocery stores still account for around a third of all European retail investment activity and discounters' investment has doubled this year.

Savills reports retail as most resilient real-estate asset class