European commercial real estate investment activity remained stable in the third quarter of 2008 at EUR 26.4 bn, slightly below the EUR 27 bn registered in the second quarter of 2008, according to the latest research report issued by CB Richard Ellis. The figure brings the turnover for Europe's investment market in the first nine months of 2008 to EUR 92.9 bn, a level comparable to investment volumes for the same period in 2004.

European commercial real estate investment activity remained stable in the third quarter of 2008 at EUR 26.4 bn, slightly below the EUR 27 bn registered in the second quarter of 2008, according to the latest research report issued by CB Richard Ellis. The figure brings the turnover for Europe's investment market in the first nine months of 2008 to EUR 92.9 bn, a level comparable to investment volumes for the same period in 2004.

Europe's largest markets continue to see the greatest impact of the credit crunch, with the UK, Germany and France falling to EUR 11.4 bn in the third quarter. The figure represents 43% of the European market as a whole, and compares to an historical share of around 65%. By contrast, seven of the remaining 23 countries in Europe saw investment market activity increase quarter-on-quarter. Most notable was the Nordic region, where investment turnover was boosted by two major transactions. Activity was also robust in the Central and Eastern Europe region, specifically the Czech Republic, Russia and Poland.

Equity-based investors continued to drive the market in the third quarter, with, in particular, the German Open-ended Funds (GOEFs) spending a further EUR 2.9 bn in the period. Across Europe, the GOEFs accounted for 11% of all third -quarter acquisitions.

Overall the majority of the deals in the quarter were below the EUR 100 mln mark as financing for larger transactions continued to become more difficult over the summer. However, a number of attractive one-off transactions are still being completed. The Steen and Strøm transaction in Scandinavia is a good example of a large transaction involving strategic assets that are rarely traded.