Cross-border investment activity down in 2008 - CBRE

Cross-border commercial property investment activity fell to 45% of total European activity in 2008, according to new research by CB Richard Ellis.

The international property adviser said that the overall decline reflected, to a great extent, the reduction in the number of large investment deals, which are often dominated by international investors. However there were significant variations in cross-border activity according to differing local market conditions, CBRE said.

The reduction in cross-border activity last year, which largely occurred during the second half, was also driven by the decrease in investment activity in the large European markets. The reduction in the last six months of 2008 saw the share of cross-border buyers down to less than one-third of total activity in three of Europe's largest markets (the UK, Germany and France), as well as in Finland, Sweden and Italy.

However other markets maintained a cross-border majority for total investment in the second half, including Spain (69%), Belgium (66%) and the Central and Eastern European (CEE) region (85%).