European Commercial Investment Set to Jump in 2011

Investment in European commercial property is expected to rise by as much as 35 per cent in 2011, a new report has suggested. Jones Lang LaSalle (JLL) has forecast that the sector will see around EUR 130 billion spent next year...

Investment in European commercial property is expected to rise by as much as 35 per cent in 2011, a new report has suggested. Jones Lang LaSalle (JLL) has forecast that the sector will see around EUR 130 billion spent next year, with banks offloading more real estate and providing easier access to loans.

This year, spending has already jumped by 40 per cent compared to 2009, with shopping malls accounting for the biggest share in over a decade, JLL says.

In particular, cross-border investment has been prominent, making up 50 per cent of transactions by value in 2010. This, the real estate broker explains, is likely to increase further next year with buyers from Asia and the Middle East looking to target prime assets in Europe.

"The large, liquid and transparent markets in the UK, France and Germany will attract the majority of funds, with a focus on London and Paris. Nonetheless, we will see increased trading in the Nordic markets, central and eastern Europe and Moscow," Chris Staveley, director of capital markets in Europe, the Middle East and Africa, said.

Mr Staveley added that he was expecting to see more commercial properties being put up for sale by banks as they try to reduce their overall exposure to real estate.

- Wednesday 15 December 2010

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