Despite continuing concerns about the economic fundamentals, activity in the European real estate investment market is picking up. January and February saw more and bigger deals in the real estate market, the return of creative financing and strong interest in alternative property investments and secondary markets.

Despite continuing concerns about the economic fundamentals, activity in the European real estate investment market is picking up. January and February saw more and bigger deals in the real estate market, the return of creative financing and strong interest in alternative property investments and secondary markets.

Market expectations that cross-border investments in 2011 would reach levels comparable to those seen last year have so far proved unjustified. PropertyEU's research team recorded over EUR 11 bn of European investment deals in the first two months of the year, a 15% increase on the year-earlier period in which the investment volume came out below EUR 10 bn.

And with a string of asset managers planning billions worth of investments this year - as announced at Mipim - the final tally is bound to be even bigger. That said, avoiding risk is still uppermost in investors’ minds and that is evident in the division in the market between first-class property and the rest.

The deal analysis appears in the April edition of PropertyEU Magazine. Click on the link below to subscribe