European commercial property investment is on a rebound and rose 40% in the fourth quarter of 2009, to the highest level since the collapse of Lehman Brothers in 2008. Last Friday, London-based IPD, a global provider of property market indices, reported that the final month of last year delivered the largest monthly capital growth in IPD’s 23-year history, at 3.0%, according to December’s IPD UK Monthly Index. The figure beats the 2.9% delivered exactly 16 years earlier in December 1993, at the end of the last major property recession.
On the European property market, CB Richard Ellis, the commercial property consultancy, reports that more than €25.7bn of property deals were agreed in the fourth quarter of 2009, an increase of 42% on the previous quarter and double the levels traded in the first two quarters of the year.
In the first three quarters of 2009, there was about €41bn of investment activity in the European commercial real estate market. There has been a steady increase in activity each quarter since the low of €12bn in Q1 2009. The full-year total of €70bn, compares with €121bn in 2008.
Michael Haddock, director, EMEA (Europe, Middle East, Africa) Capital Markets Research, CB Richard Ellis commented: “The recent upturn in investment activity suggests that many investors believe the European market is approaching the bottom of the cycle; and in some cases, it may well be past that point. Whilst investment turnover has started to pick-up from lows of around €12 billion in both Q1 and Q2 this year, concerns remain about slow economic recovery and its lagging impact on the occupier market.”
UK Capital Investments News, January 2010
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