The European commercial real estate investment market continues to fall sharply, according to a new report by CB Richard Ellis. Turnover in the first three months of 2009 totalled just EUR 11.5 bn, compared to EUR 20.6 bn in the final quarter of 2008.
The European commercial real estate investment market continues to fall sharply, according to a new report by CB Richard Ellis. Turnover in the first three months of 2009 totalled just EUR 11.5 bn, compared to EUR 20.6 bn in the final quarter of 2008.
CBRE said the fall in investment reflected, among other things, the continuing impact of Lehman Brothers' collapse last September on investor sentiment. But the report also points to a slowing rate of decline in the UK and a pick-up in activity in several other European markets, suggesting investor sentiment may be starting to improve. The UK's share of the European market increased to 37% in the first quarter of 2009, up from 26% in the fourth quarter of 2008.
Michael Haddock, director of Capital Markets Research for CBRE in the EMEA region, commented: 'A lot has happened since the Lehman collapse six months ago, both in the world economy and in the global property markets. Yet the significant impact that event had on investor sentiment is still showing through in European property investment activity.'
'The reduction in completed property deals in the first quarter of 2009 reflects investors’ lack of confidence in the last quarter of 2008 and the longer lead times now being experienced when completing real estate transactions.'
