Capital flows into European retail property continue to follow economic performance, with Germany and those markets positioned outside of the eurozone clear favourites with investors, according to the latest data from global real estate adviser CBRE.

European retail property investment amounted to EUR 9.4 bn in the final quarter of 2011 (Q4), compared to EUR 11.7 bn in the same period a year before. In total, some EUR 37 bn of retail assets were traded over the course of last year, representing a record share of Europe's overall commercial real estate investment market, just over 2010's record of 32% on the pan-European level.

Similarly to past years, capital flows continue to favour Europe's stronger and faster growing economies, with Germany and some of the Nordic and Central and Eastern European (CEE) markets seeing robust activity levels. Germany continued to gather pace in 2011 with just under EUR 11 bn of deals transacted for the year as whole. The German retail market has tripled in size since 2009, while the retail share of the overall commercial property investment jumped to 48% in 2011, up on the 42% recorded last year.

Iryna Pylypchuk, Associate Director EMEA Research CBRE, commented: 'In an uncertain economic and political environment, investor strategies will remain risk-averse and we expect the defensive strategies will put even greater investor focus on good quality retail assets.'