Commercial property investment markets in Europe saw a modest rise in activity in the third quarter, with volumes totalling EUR 29.7 bn, 3.7% up on Q2, according to Cushman & Wakefield’s European Commercial Property Investment report.

Commercial property investment markets in Europe saw a modest rise in activity in the third quarter, with volumes totalling EUR 29.7 bn, 3.7% up on Q2, according to Cushman & Wakefield’s European Commercial Property Investment report.

Year-on-year volumes did, however, fall marginally, by 5.3%, to EUR 122.5 bn.

Investors’ focus on core markets was again high, with foreign investors in particular pulling back from emerging and indebted countries.

Cushman & Wakefield said that a reappraisal of risk is forcing a re-pricing in some areas and greater realism by those wanting to sell could ensure a more active market in the next few months.

Sector trends remain volatile, with retail bouncing back somewhat but still down over the year, with a market share of 23% versus 32% in 2011. Offices by contrast have increased their market share to 52% in the first three quarters, up from 45% in 2011.

Investment activity rose marginally in Q3 thanks to a surge in domestic buying. While cross-border players cut activity by 19.5%, domestic players more than made up for this, with 20% growth lifting their market share to 65% from 56% in Q2, notably in Norway, the Netherlands, France and the UK.

Michael Rhydderch, head of capital markets at Cushman &Wakefield, EMEA said: 'Investors are eager to find secure income given the sustained low level of bond yields and while the market was understandably cautious in Q3, the fall in foreign activity really reflected a refocusing on larger, liquid core markets rather than a retreat from investment.'