EMEA property volumes reach €33b in Q1

The property investment market started the year strongly, with quarterly volumes in EMEA reaching €32.7 bn, 15.7% up on Q1 2012, according to Cushman & Wakefield.

The firm's forecast of just under €137 mln for the full-year 2013 is 4.4% up on the previous year.

Activity was down on Q4 2012 by 24.8%, but Cushman & Wakefield said that this was not unusual, as the opening quarter is typically quieter than the busy year-end period. The first quarter has been down on average 25% on the previous quarter over the previous 5 years.

Cushman & Wakefield said that growing levels of activity in 2013 are supported by both more debt and more equity in the market. On other hand, the supply of core product remained limited and pricing is increasing. This has led to a broadening in demand in terms of assets.

Jan Willem Bastijn, head of capital markets at Cushman &Wakefield, EMEA: 'The year has started well with plenty of momentum from Q4 spilling over into this year. A subtle change is happening in the market however, with the core countries maintaining strong interest and a high market share but more risk-taking also emerging as well as increased interest in diversifying. What’s more, in seeking out larger lots such as quality shopping centres, investors will increasingly go where the stock is – leading to more activity of late in Central Europe for example.’

Looking ahead, Bastijn said that, ‘the momentum we develop this quarter will set the scene for the summer and will be key to how busy we are for the year overall. With lots of available core capital and increased interest from opportunistic players, activity levels are likely to increase in our opinion and our forecast for the year is €136bn, 4% up on 2012.’