The first half of 2019 is already behind. It’s time to take preliminary results and talk about the dynamics of the global real estate market. It is also interesting to see which countries have become leaders or, on the contrary, have lost leading positions.

The past six months have largely rehabilitated the UK property market, which has been in crisis for the past three years. Experts note an increase in investment in all sectors of the British market.

Who are the Leaders of the Investor Race?

Investments in hotel real estate in the UK accounted for 28% of the total investment in Europe in this segment, and reached € 3,2 billion, CBRE said.

In April-June 2019, the size of the Italian market showed significant growth: in the first half of the year, Italy’s share was 20%, and the market volume reached € 2,3 billion, which is almost two times higher than the value of the first half of 2018.

In Germany, which is the third-largest European market in this segment, the investment volume has not changed over the past six months and reached € 1,6 billion, which is 15% of the total investment in hotel real estate in Europe.

Over the past six months, investment in hotel real estate in France amounted to € 0,86 billion. France became the fourth largest market in Europe, showing significant growth (40%) compared with the first half of 2018, analysts say.

They add that multiple growths were also noted in Austria (€ 0,46 billion in the 1st half of 2019 against € 0,06 billion in the 1st half of 2018), Portugal (€ 0,42 billion against € 0,06 billion), and Belgium (€ 0,25 billion against € 0,04 billion).

The Russian market has not yet reached such volumes, investment in the hotel segment in the first half of 2019 amounted to about 12,6 billion rubles (€ 0,17 billion Euros).

What is the Forecast for the Next Half Year?

It is expected that the growth in demand for hotel services will continue in the second half of 2019 due to an increase in consumer spending on tourism and travel. The volume of construction of hotel real estate is growing in some regions of Europe, mainly in the low and medium price ranges, however, in most cases, the supply will lag behind demand.

Over the next 6 months, experts expect performance in the hotel real estate sector to improve. Growing institutional interest and investment appetite among a wide range of buyers are expected to have a positive impact on profitability and prices.