Direct commercial real estate investment (office, industrial spaces and retail) in Europe is expected to reach around €70 billion in 2009 and could grow by 20% next year up to €85 billion, according to a new research from real estate consultant Jones Lang LaSalle.
The fourth quarter 2009 will turn out to be third consecutive quarter of increasing volumes and also the strongest quarter of the year, with almost €25 billion transacted. However, despite the increase in transactional activity throughout the year, full-year volumes will stand 40% below 2008 level.
“European real estate investment markets are now past the lowest point of one of the worst economic downturns the modern business world has experienced. Investor confidence has improved significantly from the historic lows at the beginning of 2009 and market drivers are trending up. In 2010 we expect further increases in transactional activity of up to 20% on 2009 levels, taking us to around €85 billion next year,” said Chris Staveley (photo), Director European Capital Markets at Jones Lang LaSalle
The UK remains the most active market in the region; €25bn was invested in direct real estate in 2009, representing 38% of overall activity in direct real estate investment in Europe during the year. London continues to demonstrate high levels of liquidity, although investors are finding it an increasingly competitive market. Prime investment product is becoming scarce, with multiple bids for the best product. The second largest market, dominated by domestic institutions, is Germany where over €10billion was traded in 2009.
Jones Lang LaSalle is a leading real estate investment management firm in Romania with a revenue of €2.8 million in 2008. Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.
