Direct investment into commercial real estate in EMEA is likely to reach EUR 100 bn in 2010, according to new research from Jones Lang LaSalle. This figure represents an increase of over 40% on volumes recorded for the full year 2009.

Direct investment into commercial real estate in EMEA is likely to reach EUR 100 bn in 2010, according to new research from Jones Lang LaSalle. This figure represents an increase of over 40% on volumes recorded for the full year 2009.

Investment activity in the first three quarters of 2010 was already substantially ahead of last year's levels and a strong fourth quarter is expected. The fourth quarter is traditionally the strongest of the year, and Jones Lang LaSalle estimates that direct real estate transactions will reach EUR 31 bn in Europe, which would be 35% higher than quarter three volumes.

The trend of rising investment volumes has been Europe-wide, but most pronounced in Germany and the Nordics, where volumes are forecast to almost double in the former and increase more than twofold in the latter, compared to 2009, to around EUR 33.5 bn across the two markets. Central and Eastern Europe (CEE) maintained its overall share of total European transaction volumes in 2010 (6% as in 2009) as transactions in the region increased by 42% year-on-year.

Cross border investment has remained at the 50% mark throughout 2010, and Jones Lang LaSalle expects this share to rise as equity rather than debt buyers, especially from Asia and the Middle East, continue to target trophy assets in European markets.