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News Release

London - Moscow

Direct investment in commercial real estate in Europe nearly €70bn in 2009

New Research Released by Jones Lang LaSalle

London - Moscow, 23rd December 2009 - Direct commercial real estate investment in Europe will reach close to €70bn in 2009, according to new research from Jones Lang LaSalle.  The fourth quarter 2009 will be the third consecutive quarter of increasing volumes and also the strongest quarter of the year, with almost €25bn transacted. However, despite the increase in transactional activity throughout the year, full year volumes are down 40% on 2008.

Chris Staveley, Director, European Capital Markets at Jones Lang LaSalle commented: “European real estate investment markets are now past the lowest point of one of the worst economic downturns the modern business world has experienced. Investor confidence has improved significantly from the historic lows at the beginning of 2009 and market drivers are trending up.  In 2010 we expect further increases in transactional activity of up to 20% on 2009 levels, taking us to around €85 billion next year (assuming no further significant economic shocks).”

The UK remains the most active market in the region; €25bn was invested in direct real estate in 2009, representing 38% of overall activity in direct real estate investment in Europe during the year. London continues to demonstrate high levels of liquidity, although investors are finding it an increasingly competitive market. Prime investment product is becoming scarce, with multiple bids for the best product. The second largest market, dominated by domestic institutions, is Germany where over €10bn was traded in 2009.

Nigel Roberts, Chairman European research at Jones Lang LaSalle said: “Throughout the year we have observed some easing in the debt market, particularly credit for new purchases of prime buildings; however a lack of quality product on the market has meant a significant amount of capital remains frustrated.  In some markets, for example London and Paris, this has led to the hardening of yields.”

Jones Lang LaSalle expects the list of investors to continue to grow, with funds having more success with capital rising, international wealth capital continuing to show interest in the sector and now some groups, such as UK REITs and retail funds, who were, up to now, net sellers becoming active buyers.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specialising in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $37 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008 and 2009 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
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