Germany attracted just over 30% of real estate investment in the first three months of 2012, according to preliminary figures compiled by PropertyEU Research. Germany accounted for EUR 5.4 bn of the total European volume of EUR 17.2 bn captured by our analysis of the market in Q1 as the country continued to benefit from its status as a safe haven in Europe.
Germany attracted just over 30% of real estate investment in the first three months of 2012, according to preliminary figures compiled by PropertyEU Research. Germany accounted for EUR 5.4 bn of the total European volume of EUR 17.2 bn captured by our analysis of the market in Q1 as the country continued to benefit from its status as a safe haven in Europe.
The UK - for many years the largest real estate investment market in Europe - saw EUR 4.3 bn of deals, about 25% of the total European volume, in Q1. France, the third largest market, attracted EUR 2.6 bn of property investment. Given the volatility in most markets it is difficult to accurately price transactions for which the investment volume was not disclosed by the buyer or vendor.
PropertyEU Research covers deals of EUR 20 mln-plus where the investment volume is reported or can be ascertained through other sources.
It should be noted that the German volume was significantly boosted by the EUR 1.4 bn acquisition of a 24,000-unit residential portfolio by a pension fund consortium led by listed property company Patrizia.
Further large residential portfolio acquisitions are expected in Germany this year. However, real estate investment across Europe appears to be slowing are a busy ending to 2011. The volume of EUR 17.2 bn for Q1 this year is sharply down on the EUR 27 bn recorded in the final three months of last year. PropertyEU also recorded more than EUR 20 bn of deals for Q1 2011.
Preliminary data on the global situation published by Jones Lang LaSalle this week suggests Q1 volumes for Europe, the Middle East and Africa are down by half compared with the same period in 2011. The property adviser is publishing its preliminary EMEA report later this week.
The phenomenon of declining volumes is particularly acute in Central and Eastern Europe (CEE). Property adviser CBRE reported this week that CEE volumes came to EUR 900 mln during the first quarter of 2012 - the lowest volume seen since Q3 2009.
Our preliminary analysis of the real estate transactions in Q1 2012 appears in the May edition of PropertyEU Magazine. Click on the link below to order your copy now.
