Volumes of Investment in Real Estate Are Still Rising

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Commercial real estate investment volumes across Europe continued their upward trend over the third quarter of the year, according to latest figures from DTZ.

The sector posted a 30 per cent increase to pounds 12.7 billion from pounds 9.9 billion in the second quarter of the year, marking the quarter-on-quarter rise from the market's low point in at the start of the year, when volumes fell to just pounds 9.1 billion.

The latest figures are in line with trends across Asia Pacific where investment volumes marked the third quarter-on-quarter increase to pounds 10.7 billion.

Birmingham-based James Bladon, associate director in DTZ's investment team, said: "There are increasing signs of a loosening in debt markets and an appetite to undertake larger deals, with at least two deals of more than EUR1 billion recorded in Spain and the UK in the past quarter - the only billion euro deals this year.

"However, such deals remain the exception with the majority of activity focused towards smaller lot sizes as debt markets continue to operate on a restive basis as lenders continue to work out existing loans and refinancing. …