European Q1 investment volume edges up 8% to €47b - JLL

European real estate investment volumes reached $51 bn (€47.5 bn) in the first quarter of 2015, according to preliminary data released by JLL.

Global direct commercial real estate investment transaction volumes reached $148 bn during the first three months, up 4% compared with Q1 2014.

The Americas led the charge, with Q1 volumes up 18% over the same period last year. Volumes for Asia-Pacific were just 3% higher, while numbers in EMEA fell by 11% in US dollar terms but were 8% higher in local currency terms, reflecting the strength of the US dollar against many global currencies currently.

European markets
Most countries across Europe experienced volume growth, with the exception of markets in Central and Eastern Europe (CEE) which were down 20% in euro terms. JLL said that while the UK led growth in Q1, pivotal elections on the horizon in the second quarter could have an impact on growth if an 'uncertain government' is formed.

Comment
Arthur de Haast, lead director of the International Capital Group at JLL, said: 'The United States is the engine that’s powering growth in the Americas with volumes 26% higher than last year, compensating for the declines in both Latin America and Canada. The strong dollar is also influencing activity in the eurozone, Japan and Australia, where local market activity has increased but whose currencies have all weakened against the US dollar over the past year.' JLL expects total commercial real estate volumes for 2015 to come out at between $740 bn and $760 bn, up 4% on 2014 volumes.

'Global real estate continues to benefit from increasing capital inflows with a greater number of large portfolio and single-asset deals expected to transact during the year,' noted David Green-Morgan, JLL’s global capital markets research director. 'Despite the US Federal Reserve flagging potential interest rate rises in 2015, swap markets continue to show little upward movement in US rates by year-end. With most major economies holding their interest rates steady for the foreseeable future, real estate should continue to look attractive against fixed income comparables.'