Cross-border deals slow as European volumes fall 3% in Q3: DTZ

European commercial real estate investment activity reached EUR 24.6 bn in Q3 2012, a 3% decline from Q2 2012, according to the latest statistics published by property adviser DTZ.

Over the last twelve months volumes across Europe reached EUR 108 bn, an 8% fall on the EUR 117 bn recorded in the same period a year ago.

Uncertainties on the economic and financial landscape continue to lead investors to focus on the perceived safe haven markets of the UK, Germany and France. Combined these markets attracted 79% of activity in Q3, up from a 73% share in Q2.

Both the UK and Germany registered an increase in activity with volumes up 6% to EUR 10.9 bn and 20% to EUR 4.9 bn respectively. In France volumes slipped 16% to EUR 3.5 bn. Elsewhere market activity is constrained with the Nordics falling by 39% to EUR 2.4 bn and CEE recording a 27% increase to a modest EUR 400 mln. Investors continue to desert the peripheral markets of Ireland, Italy and Spain. Volumes in these markets fell 22% over the quarter to EUR 400 mln. This reflects a 2% share compared to a longer run average of 10%.

Magali Marton, head of DTZ CEMEA Research, said: 'The continued uncertainty in the Eurozone is clearly visible in the the level of cross-border investment, which slowed from EUR 11.6 bn in Q2 to EUR 9.7 bn in Q3. Inter-regional investors were less active as activity fell from EUR 8 bn in Q2 to EUR 6 bn in Q3. Their focus remained on the core three markets of the UK, France and Germany. Despite this reduction they remained the only net investors this quarter at over EUR 4 bn, mainly reflecting activity from international and Asian based funds.'