European property investment reaches EUR 24b in Q1: CBRE

Investment turnover in the European commercial real estate market slowed at the start of 2012, largely reflecting a seasonal slowdown in activity, according to the latest research by global property adviser CBRE.

The commercial property investment market totalled just under €24 bn in the first quarter of 2012 (Q1 2012), which represents a 31% fall in activity compared with the last quarter of 2011 and an 18% decline versus Q1 2011, bringing turnover broadly in line with activity during Q1 2010.

The Nordic region was a notable exception to the general slowdown in property investment activity across Europe, with an increase of nearly 50% in activity during Q1 2012 compared with Q1 2011. Norway experienced exceptionally high activity during Q1 2012 at EUR 2.2 bn - surpassing Sweden, traditionally the most liquid market.

Jonathan Hull, head of EMEA Capital Markets, CBRE, commented: 'The Nordic markets are increasingly active - government finances are favourable compared with the rest of Europe, as are the prospects for economic growth. Solid fundamentals have driven an increase in the number of foreign buyers looking to enter the region. Sweden remains a key target for many investors and we are witnessing increasing interest in other Nordic markets.'

In Q1 2012, there was a low level of property investment activity in Central and Eastern Europe (CEE) following bumper investment in the region throughout 2011. Property investment activity in the region totalled EUR 901 mln during Q1 2012.

While experiencing a moderate slowdown (-9%) compared with Q1 2011, France showed a significant slowdown in property investment activity during Q1 2012 compared with Q4 2011 (-74%). CBRE said the French market has been particularly seasonal for the past few years, with similar fallbacks from Q4 to Q1 in each of the last three years.