The European real estate market is expected to see 'exceptionally strong' investment activity in the first quarter of 2014 which will support full-year growth of 10%, according to Jones Lang LaSalle.

The European real estate market is expected to see 'exceptionally strong' investment activity in the first quarter of 2014 which will support full-year growth of 10%, according to Jones Lang LaSalle.

The adviser predicts that investment activity will spread across geographies and sectors, supported by the continued weight of capital into the sector and improving confidence.

European markets booked some of the best results last year since 2007, recording growth of 14% overall in dollar terms, with full-year volumes at $184 bn (€135 bn). The UK and Germany recorded growth 19% and 17% respectively.

Global real estate investment volumes are set to exceed $600 bn in 2014 after rising 18% to a seven-year high of $549 bn in 2013. Improving global economic conditions and enhanced liquidity pushed Q4 global real estate investment volumes to $183 bn.

Arthur de Haast, lead director for the international capital group at JLL, said: 'The global real estate capital markets continue to improve on the back of more optimistic global economic forecasts and investor sentiment. Real estate is certainly benefiting from the desire of investors to hold hard income producing assets, alongside and in some instances in preference to, more liquid investment opportunities.

'The desire of experienced investors to look at opportunities which require additional asset management or more creative solutions has helped push 2013 volumes past our initial expectations. With this trend expected to continue into 2014, we are confident that investment volumes will continue to grow.'