The volume of commercial real estate investment across Europe in the first quarter of 2010 fell 29% quarter-on-quarter to EUR 16.3 bn, according to global property adviser DTZ.
The volume of commercial real estate investment across Europe in the first quarter of 2010 fell 29% quarter-on-quarter to EUR 16.3 bn, according to global property adviser DTZ.
However, first quarter 2010 volumes were still 65% higher than the EUR 9.9 bn recorded in the same period a year ago, DTZ says in its first estimate of European investment volumes.
Commenting on the figures, Magali Marton, head of CEME (Continental Europe and Middle East) Research, said: 'The fall in activity over the quarter was not surprising given the flurry of activity in Q4 2009 as investors rushed to deploy capital before the end of the year.
'This seasonal pattern has been a traditional feature in the European property investment markets. In fact, the average volume over the last four quarters rose by 10% from EUR 15.3 bn to EUR 16.9 bn and underscores the gradual recovery in Europe's markets.'
The big three markets of the UK, Germany and France accounted for around two-thirds of activity, with Germany grabbing a bigger share as activity rose 40% over the quarter from EUR 3.1 billion to EUR 4.3 bn.
In contrast volumes in the UK (EUR 4 bn, down 56% quarter-on-quarter) and France (EUR 2.4 bn, down 42% quarter-on-quarter) were weaker, reflecting both increased investor caution and a general lack of stock in the market. Elsewhere in Europe, the market has been very dynamic in the Nordic countries with an increase by 64% quarter-on-quarter to EUR 2.6 bn.
Marton said: 'Despite much more optimism demonstrated by investors, risk aversion remains evident across Europe; with investors concentrating on domestic markets and particularly on prime assets in core markets.'