Investment opportunities increase in London and Paris

The number of commercial investment properties being brought to the market in Europe has increased since the end of the summer, with £6.5 bn (EUR 7.4 bn) of offices for sale in Central London alone, according to the latest report from global property adviser CBRE.

While more property is being offered for sale across Europe, the trend is most obvious in Paris and London. In Central London the £6.5 bn worth of assets currently on the market is roughly equal to the figure that changed hands over the first three quarters of the year. The sources are varied and include German Open-ended Funds, banks or investors looking to realise recent gains in capital values.

Commercial real estate investment in Europe totalled EUR 26.3 bn in the third quarter (Q3) of 2011, thanks to continued strong interest from institutional investors. The figure marks a modest (3%) increase on the EUR 25.8 bn recorded in Q2 2011 despite the changing economic and financial market circumstances.

One feature of the market that has changed over that time is the recovery of office sector activity. The first half of 2011 was notable for the marked decline in the total value of office investments being transacted in Europe, in sharp contrast to continued growth in the retail sector. The third quarter of 2011 saw the market return to historic balance, with offices accounting for just under 50% of total European investment activity.