European investment tops EUR 19b in Q1: CBRE

European commercial real estate investment turnover reached EUR 19.1 bn in the first quarter (Q1) of 2010, a 65% increase on the EUR 11.6 bn transacted in Q1 2009, according to the latest data from CB Richard Ellis (CBRE).

Michael Haddock, director of EMEA Capital Markets Research, CBRE said that if Q1 activity levels were an accurate indication, the European real estate market is set for a pronounced year-on-year recovery in investment activity in 2010.

'Whilst 2009 witnessed a notable upturn in investor sentiment in some of the major markets, 2010 is starting to see a broader recovery establish itself across Europe, albeit at the core end of the market,' he said 'Property yields have continued to tighten, and prime office yields have come in the most, with nearly half of all city locations monitored in the EU-27 indices reporting a quarterly decline, in many cases in excess of 15 basis points.'

CBRE said the first quarter of this year extends the general recovery in investment activity that began in the latter part of 2009, with almost all European markets reporting turnover increases over Q1 2009. As expected, however, the Q1 2010 figures showed a decline compared to Q4 2009 volumes. As the last few months of the year are traditionally the most active, with investors pushing to complete transactions by the year-end, this quarterly decline is consistent with normal seasonal patterns.

Despite an overall quarterly decline, several markets experienced a quarter-on-quarter increase in activity, most notably Germany, Iberia and the Nordic region.