The amount of capital being invested in industrial property markets in Europe appears to have stagnated, according to the latest data from Jones Lang LaSalle. The firm revealed that investment volumes in this real estate sector increased by just three per cent over the course of the first half of the year, with the majority of this money focused on western European markets.
However, Germany and the UK both registered double-digit declines in the amount of capital their industrial sectors attracted in the six months from January to June, while nations in south Europe saw investment volumes fall by 40 per cent collectively. By contrast, eastern Europe experienced a significant rise in activity, with transaction volumes up by 81 per cent compared to the first half of 2010. Director of Europe, Middle East and Africa capital markets at Jones Lang LaSalle Chris Staveley commented: "Despite a good start to 2011, economic volatility has clearly impacted the total level of investor activity in Europe's industrial real estate sector."
Last month, the Great Wall of Money report published by DTZ revised downwards the amount of capital it expects will be available to be invested in global property markets over the course of 2012. According to the firm, funds are concentrating more on "putting existing commitments to work" than on raising new capital to plough back into the sector.
- Tuesday 11 October 2011