International investors are significantly shaping market activity in European retail parks. According to research by real estate services provider Savills, these players are increasingly facilitating large-volume transactions as well as the outright acquisition of extensive portfolios. In the first nine months of 2026, cross-border buyers accounted for 52 per cent of total investment volume. This figure noticeably exceeds the five-year average of around 41 per cent.
As Karsten Nemecek, Deputy CEO at Savills in Germany, explains, a clear shift in the origin of capital is emerging. Around half of the foreign volume during the period under review originated from North American investors, who constituted the strongest capital inflow. European investors, by contrast, made a below-average contribution to cross-border activity. At the same time, buyers from the Middle East and Israel gained in prominence, accounting for around a fifth of international funds.
Robust yields and growing transaction volume
Sustained investor interest in retail parks and complementary storage space is rooted in a favourable risk-return profile. Morgan Stanley Capital International reported a total return of 7.4 per cent for the segment in 2025. The average European prime yield compressed slightly from 5.73 per cent to 5.72 per cent in the third quarter of 2026. This decline was primarily attributable to adjustments in Stockholm, Sweden, whereas yield levels across the remaining markets surveyed by Savills remained stable. Retail parks were the only commercial asset class to record yield compression both quarter-on-quarter, down one basis point, and year-on-year, down five basis points.
In the third quarter of 2026, transaction volume in the European retail park sector surpassed the EUR 2 billion mark. This represents an increase of 91 per cent compared with the same period of the previous year. In parallel, a geographical diversification of invested capital is taking place: while 80 per cent of retail park investment was concentrated in established core European markets in 2021, this share dropped to 48 per cent in the first nine months of 2026. Conversely, regions in Central, Eastern and Southern Europe expanded their combined share from 14 to 46 per cent over the same period.
Convenience retail as the foundation of stable income
According to Savills, the economic rationale for investing in European retail parks is underpinned above all by the dependable income base provided by grocery retailers and discounters. Price-conscious consumer sentiment is providing sustained support for the space requirements of these tenant groups. Their expansion is aided by occupancy costs that remain moderate compared to the broader market. For investors, this enhances the value of established existing properties let to creditworthy tenants, while simultaneously unlocking targeted potential for operational value creation.
