Industrial investment volumes fall 50%

Total direct industrial real estate investment volumes came in at €2.2bn in the first half of 2009, a 45% fall on the second half of 2008 and a 50% dip from the first half of 2008, according to Jones Lang LaSalle’s latest European Industrial Markets Autumn 2009 report.
'Although overall investment activity remained subdued in the first half of the year, in the second quarter investment volumes stabilised with a pick up in investor sentiment more positive than transaction volumes would suggest. While a full recovery will depend on debt markets, and occupational markets, which look set to remain weak for some time to come, we anticipate transaction volumes to carry on improving with investor interest focussed on a narrow band of prime assets in core markets,' said Chris Staveley, head of the Pan European Capital Markets team at Jones Lang LaSalle.
Largely due to a strong price correction since the end of 2007, the UK industrial market saw its market share grow significantly. Britain accounted for half of the total European volume invested in industrial assets in H1 2009. The core Western European markets, on the other hand, recorded only GBP 750mln (EUR 820] worth of transactions, a dip of 61% on the first half of 2008 and 40% on the second half of 2008. The sharpest drop in investor activity was in Germany where it was down by 80% on H1 2008 and 86% on H2 2008, JLL said in its report.