Aug 02, 2012
CBRE
European Investment Quarterly
www.cbre.eu/research Q2 2012 · Renewed euro zone crisis fails to dent investment activity
Commercial real estate (CRE) investment activity totalled 24.6 billion in Q2 2012, only very slightly down on the previous quarter, and on the same quarter in 2011. This is despite the further escalation of the euro zone crisis. Excluding the seasonal effect in Q4 of each year activity seems to have stabilised at about 25-27 billion per quarter since the middle of 2010.
Q2 Investment Turnover
Change from: Q1 2012 Q2 2011
· National pattern of activity changing
Over the last year or so we have been reporting consistently on the strength of the German, Nordic and CEE investment markets, all of which had been experiencing increasing activity. Activity fell back somewhat in these markets in Q2, although lack of good quality stock seems to be the main reason, as they are not seeing an equivalent weakness in pricing. Instead, France and the UK showed strong growth, especially when compared with the same quarter last year. France in particular bounced back strongly after a weak first quarter that was caused by transactions being brought forward into 2011 to take advantage of favourable tax treatment.
· Offices making up the bulk of activity
The office sector provided more than half of all the CRE investment in Europe over the last three months. The office market is being dominated by activity in a small number of key cities, with London and Paris featuring strongly.
European Investment Turnover ( billion)
80
60
40
20
Contacts
Michael Haddock Michael.Haddock@cbre.com Tel. +44 207 182 3274
0
UK
Beau Garrido Beau.Garrido@cbre.com Tel. +44 207 182 3039
Germany France Nordics Benelux Southern Europe* CEE Europe**
*Southern Europe includes Italy, Spain and Portugal ** Also includes Austria, Greece, Ireland and Switzerland
2006.1 1 2006.2 2 2006.3 3 2006.4 4 2007.1 1 2007.2 2 2007.3 3 2007.4 4 2008.1 1 2008.2 2 2008.3 3 2008.4 4 2009.1 1 2009.2 2 2009.3 3 2009.4 4 2010.1 1 2010.2 2 2010.3 3 2010.4 4 2011.1 1 2011.2 2 2011.3 3 2011.4 4 2012.1 1 2012.2 2
Market Turnover million Q2 2012 Q2 2011 Change Q2/Q2
9,187 4,297 3,843 3,626 1,262 725 1,166 24,587
7,641 5,607 2,797 4,564 1,470 1,247 2,562 26,325
20% -23% 37% -21% -14% -42% -54% -7%
© 2012, CBRE Ltd.
