Direct commercial real estate investment in Europe will reach close to EUR 70 bn in 2009, according to new research from Jones Lang LaSalle. The fourth quarter of 2009 will be the third consecutive quarter of increasing volumes and also the strongest quarter of the year, with almost EUR 25 bn transacted. However, despite the increase in transactional activity throughout the year, full year volumes are down 40% on 2008, JLL said.
Direct commercial real estate investment in Europe will reach close to EUR 70 bn in 2009, according to new research from Jones Lang LaSalle. The fourth quarter of 2009 will be the third consecutive quarter of increasing volumes and also the strongest quarter of the year, with almost EUR 25 bn transacted. However, despite the increase in transactional activity throughout the year, full year volumes are down 40% on 2008, JLL said.
Chris Staveley, Director, European Capital Markets at JLL commented: 'European real estate investment markets are now past the lowest point of one of the worst economic downturns the modern business world has experienced. Investor confidence has improved significantly from the historic lows at the beginning of 2009 and market drivers are trending up. In 2010 we expect further increases in transactional activity of up to 20% on 2009 levels, taking us to around €85 billion next year (assuming no further significant economic shocks).'
The UK remains the most active market in the region; EUR 25 bn was invested in direct real estate in 2009, representing 38% of overall activity in direct real estate investment in Europe during the year. London continues to demonstrate high levels of liquidity, although investors are finding it an increasingly competitive market. Prime investment product is becoming scarce, with multiple bids for the best product. The second largest market, dominated by domestic institutions, is Germany where over EUR 10 bn was traded in 2009.
