Direct European investment up 40% in Q3 2009: JLL

Direct investment in commercial property in Europe increased to EUR 18 bn in the third quarter of 2009 - up 40% quarter-on-quarter on the EUR 12.9 bn recorded in the second quarter, according to Jones Lang LaSalle's latest investment update released at Expo Real in Munich on Monday.

Tony Horrell, head of European Capital Markets at Jones Lang LaSalle said: 'This is the second consecutive quarter of increasing transaction volumes and we believe that we have now seen the lowest quarterly volumes that we will experience in this downturn (in Q1 2009). We expect volumes in Q4 2009 to be the strongest quarter of the year, and for full-year volumes to reach in excess of EUR 60 bn. Despite the increase in transactional activity, we expect year-end volumes to be down 45% on 2008, which in turn was down 55% on 2007.'

Horrell continued: 'As we moved through the summer period, sentiment surrounding the market improved markedly and today there are clear signs of new found confidence in some European markets. Sentiment clearly has the ability to move markets (and often to trump fundamentals) and at the moment, sentiment is one of the key drivers of the increase in transactional interest and activity, which is evident in all sectors and most markets.'