European commercial property investment is on the rise

In Q1 2010, the quarterly average volume of investments in European commercial property has climbed up by 12%, up to €17.2 billion from €15.4 billion. The indicator is growing for two quarters in a row already.

Among the major European markets, analytics of DTZ consultancy highlight Germany, where the investment volume has soared by 32%, compared to Q4 2009. While, over the same period, the indicator has decreased in the UK and France, and amounted to 48% and 56%, respectively.

That said, investors continue to avoid risks and prefer to invest in local markets. In Q1 the share of foreign nationals has only worked out 5% of total investment, compared to 25% at the market’s peak, Europe Real Estate says.

The majority of all transactions (44% of the total number) involved commercial property. The share of transactions with offices has decreased from 54% in the preceding quarter, down to 37% in Q1.

The agency experts have also noted that many investors do not hasten the decision-making due to uncertainty about the sustainability of economic recovery in Europe.