Investment volumes to reach EUR 123bn in 2011: DTZ

Investment in commercial real estate across Europe reached EUR 95.9 bn in 2010, representing a 53% increase on the EUR 62 bn booked in 2009, according to DTZ Research in its latest Investment Market Update report.

European investment volumes are expected to rise by a further 28% in 2011 to EUR 123 bn, just below the 10-year European average of EUR 125 bn.

The report indicates that in Q4 2010 investment volumes in Europe reached EUR 30.8 bn, a 36% increase on the EUR 22.7 bn achieved in the third quarter. The growth in activity during the quarter was supported by an increase in the number of sales over EUR 200 mln. This has been mirrored by an increase in the average lot size, reaching EUR 32 bn in Q4 2010 up from EUR 26 bn in Q3 2010.

Within the major European markets, France and Germany posted the strongest fourth-quarter growth in investment volumes, increasing 73% and 42% respectively. In contrast, volumes in the UK rose by just 5% during Q4.

Other European markets have recovered in line with the improving economic situation with the Nordics recording above 100% growth in the fourth quarter. Year-on-year investment volumes in the Nordics have risen 153% from EUR 4.6 bn in 2009 to EUR 11.7 bn in 2010, as a result of significant activity in both Sweden and Norway. In contrast to other European markets, investment volumes fell by 25% in Spain to EUR 800 mln, with this market still viewed as risky by investors.