European property records highest Q4 volume since 2007

European commercial real estate investment activity reached €46 bn in Q4 2013, the highest quarterly volume since 2007, DTZ has said.

This propelled total investment volumes for full-year 2013 to €139 bn, up by 17% compared with 2012 (€118 bn), the international property adviser said in a preview of its Investment Market Update for Europe.

The core markets of UK and Germany continue to drive European market activity, although Q4 also saw a strong rebound in peripheral countries with €3.7 bn of acquisitions.

Cross-border investors were more active in Q4, investing €22 bn - double the figure for Q3. Non-European investors increased their exposure by €7 bn, focussing on the UK, CEE and peripheral countries

DTZ Research is maintaining its forecast for 2014 of €150 bn, up 8% from 2013. Volumes are expected to grow significantly in peripheral and CEE countries.

Across the three core markets, the UK and Germany posted the biggest increases on a quarterly basis, +31% to €20 bn and 88% to €11 bn respectively. By contrast, France recorded modest growth of 8% over the quarter as volumes reached €4.8 bn. The Nordics recorded a strong Q4 with €4 bn of transactions, including €1.5 bn invested in Norway. In contrast, the CEE region saw a decline in volumes to €800 mln over the quarter.

Nigel Almond, head of strategy research at DTZ Research, commented: 'Following the trend highlighted in Q3, the peripheral countries (Ireland, Italy and Spain) continued to attract investor interest and posted the biggest increase in Q4 reflecting the improved outlook for these markets. Investment volumes reached €3.7 bn in Q4, compared to a quarterly average of €1.5 bn since the beginning of the year. With €7.7 bn invested in 2013 (up from €3.6 bn in 2012), these countries accounted for 6% of the European volume in 2013 as a whole.'