The eurozone debt crisis continues to cast a shadow over commercial property investment markets, but volumes rose nevertheless in the second quarter of 2012 by 8% to EUR 29.2 bn compared with Q1, according to research from Cushman & Wakefield.

The eurozone debt crisis continues to cast a shadow over commercial property investment markets, but volumes rose nevertheless in the second quarter of 2012 by 8% to EUR 29.2 bn compared with Q1, according to research from Cushman & Wakefield.

Year-on-year volumes rose marginally, by 0.6%, to EUR 124.6 bn, but were down 19.4% on the average of the previous five years and 17.7% compared to the second half of 2011.

Offices have been the strongest performing sector of late, with activity rising 19.8% on Q1 to EUR 16.5bn, 57% of the total market. Industrial market activity also improved, with a 21% increase taking the sector’s market share to 8.5%. This was on the back of a weak Q1, however, and volumes are still 14% down on the 5-year average.

Retail market activity meanwhile has been a victim of the increased caution being seen in the market as well as a shortage of finance for a larger lots and a focus on only the best. Retail volumes overall fell by 5.9%, giving the sector a 19.9% share for the quarter versus a recent high of over 40% (Q1 2011). Sector patterns are far from uniform market by market, however, with retail up in Germany, France and Sweden for example but offices ahead in the UK, France, Russia, Denmark and Switzerland.

Commenting on the figures, Michael Rhydderch, Head of Capital Markets at Cushman &Wakefield, EMEA said: 'Even some previously committed investors are choosing to step back to wait to see what will happen but it’s clear that we have more than just the sovereign debt crisis shaping what is happening - activity is also being hit by the disarray in much of the banking sector, not to mention uncertainty in the wider economic and employment picture.'