Real estate transaction volumes fell by 20% in the EMEA region in the first quarter of 2016, according to preliminary analysis by JLL.
The company said weaker market sentiment and a risk-averse climate were responsible for a 17% drop in global real estate volumes year-on-year to US$128 bn (€112 bn). Last year's first quarter was the strongest start to a year in the six-year cycle.
Despite the overall downward trend there were pockets of growth in the Nordics, Benelux and CEE, with 2016 activity forecast to stay broadly in line with 2015 thanks to strong equity markets.
Within the EMEA region the biggest falls were in the UK, which declined by 37%, and France, down by 30%. Germany was the best performer of the big three markets, recording a 7% drop.
'The heightened level of volatility and risk aversion that we experienced in the first four to five weeks of 2016 have combined with what is always the quietest quarter of the year to make the results for Q1 2016 look quite weak,' said JLL’s global capital markets research director, David Green-Morgan.
'Nonetheless, recovery has been particularly quick, equity markets are back to early January levels and credit spreads have narrowed again. Capital remains unspent and more is likely to be deployed as we move through the year, leading us to believe that 2016 activity will be broadly in line with 2015 at around US$700 bn (€615 bn).'
