European direct real estate investment holding up, says JLL

The European direct real estate investment market is holding up in line with expectations, according to the latest transaction data collected from Jones Lang LaSalle Capital Markets in 32 countries across Europe, Middle East and Africa.

Richard Bloxam, Head of European Capital Markets at Jones Lang LaSalle said: 'In Europe, as in other regions, the largest, most liquid markets continue to perform well. This is a reflection of the dominance of equity buyers who are currently looking for safe havens, and has to some extent offset a lack of transaction activity elsewhere in Europe."'

Robert Stassen, Head of European Capital Markets Research added: "In the UK, London continues to dominate with robust levels of activity despite the Olympics which meant August was very quiet. Paris has had another strong quarter, as it continues to attract large inflows of international capital. Over the year to date, the UK and France have achieved volumes in line with the equivalent period last year, and together accounted for 50% of activity in Europe. In contrast, the lack of good quality stock on the market in the office and retail sectors in Germany has constrained commercial real estate volumes. However, there has been strong interest over the first three quarters of 2012 in the German residential sector which saw circa EUR 8 bn transacted compared to circa EUR 6 bn in the full year 2011. Looking at Central and Eastern Europe (including Russia) volumes have been subdued, down 40% on the equivalent period last year reflecting fewer investment opportunities rather than a change of investor sentiment.'