Commercial real estate investment activity in Western Europe dropped by 9% over the first nine months of 2012 compared to same period in 2011 and continues to slow, property adviser BNP Paribas Real Estate (BNPPRE) said.
Commercial real estate investment activity in Western Europe dropped by 9% over the first nine months of 2012 compared to same period in 2011 and continues to slow, property adviser BNP Paribas Real Estate (BNPPRE) said.
Central Paris, Central London, Berlin and Munich were exceptions to this declining trend, turning in good performances, BNPPRE said.
From January to September 2012, total commercial real estate investment volume in Western Europe amounted to EUR 69.8 bn, with Q3 alone chalking up EUR 23.3 bn. Totalling EUR 12.7 bn, the office investment market is more than half of the total commercial real estate investment volume in Q3 2012. Investment in retail real estate for the quarter amounted to EUR 5.6 bn, relatively unchanged since the beginning of 2012.
Andrew Cruickshank, international investment director at BNP Paribas Real Estate, commented: 'Risk aversion remained the driving force for investors who stayed focused on prime assets - high quality buildings in top locations, rented to renowned tenants with long leases. Investors dissect each market and its exposure to the eurozone crisis and consequently remain strongly interested in the most liquid markets. Thus, while demand from investors in core markets remains strong, it is the lack of prime supply that constrained investment activity over the first three quarters of 2012.'
