Strong activity in central London was the main driver of a 15% increase in commercial real estate investment volumes in Europe in Q3 2012, according to the latest research by CBRE. During the period, investment transactions in the region totalled EUR 28.4 bn, compared with EUR 24.7 bn in Q2 2012.

Strong activity in central London was the main driver of a 15% increase in commercial real estate investment volumes in Europe in Q3 2012, according to the latest research by CBRE. During the period, investment transactions in the region totalled EUR 28.4 bn, compared with EUR 24.7 bn in Q2 2012.

This means volumes are almost back to the level seen in Q3 2011 when they totalled EUR 28.6 bn.

By far the strongest trend was evident in the UK, which saw EUR 11.9 bn of transactions completed during the quarter, an increase of 40% on Q2 2012 as well as Q3 2011.

A number of larger transactions that were expected to complete in Q2 were instead completed in early Q3, which exaggerated the quarter-on-quarter change.

The UK also dominated regional activity, accounting for 42% of European investment for the quarter. This was driven by the continued attraction of London as an investment destination, with the city accounting for 73% of transactions in the UK so far this year.

Europe's second-largest property market - Germany - also saw a significant quarter-on-quarter increase in investment. Total activity for the quarter was EUR 5.1 bn, an increase of 19% on Q2 2012, reversing a short-term dip in activity in Q2. France saw a Q3-on-Q2 decline in activity. This decrease was expected as the volumes for Q2 2012 were boosted by two large sales from a German open-ended fund that is being liquidated. At EUR 3.3 bn, France's Q3 2012 activity was 9% below the level recorded in Q3 last year.

Jonathan Hull, head of EMEA capital markets at CBRE, commented: 'The London market is proving to be highly resilient, and continues to be sought out by investors from around the world. International buyers have been dominant over the last t12 months and it is fair to say that they are making the market for major central London offices. The profile of investors who are active at the moment suggests that London is considered a safe haven due to the market’s liquidity and position outside the eurozone.'