European property volumes in Q1 almost halved y-o-y: JLL

Direct commercial property transactions in Europe, the Middle East and Africa (EMEA) tumbled 45% in the first quarter of 2012 to EUR 20 bn, according to preliminary data compiled by Jones Lang LaSalle. A year ago, EMEA accounted for transaction volume of EUR 37 bn in the first three months.

Global direct commercial property transactions in Q1 2012 fell less sharply, by 23% to $75 bn (EUR 57 bn) compared to the same period last year. All major property markets recorded a quieter start to the year after a very active 2011, particularly in the final quarter.

One of the reasons for the decline recorded for Q1 this year was an absence in the last three months of large one-off transactions such as the EUR 2 bn sale of the Trafford Centre in the UK during the first quarter of 2011. A second factor was the sustained economic pressures restricting the availability of debt finance, especially for new borrowing, JLL said.