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London - Moscow

EMEA Direct Real Estate Transaction Volumes Set to Increase 30% in 2010

Jones Lang LaSalle issues Q1 2010 market volumes and gives full year forecast


London - Moscow, 28th April 2010 - Direct commercial real estate transaction volumes in EMEA in Q1 2010 reached €20 billion, according to Jones Lang LaSalle. This was 75% up on Q1 2009 (€12 billion) but 15% below the previous quarter Q4 2009 (€25 billion). Transaction volumes in the UK at €7.8 billion accounted for over one third of the total and remained at the same level as the previous quarter. The UK was followed by Germany, France and Sweden in terms of quarter one volumes and each recorded an increase in activity compared to the previous year’s volumes.

Richard Bloxam, Director, EMEA Capital Markets, Jones Lang LaSalle said: “The first quarter of the year is typically one of the slowest quarters; investors do not have the urgency to press on and close deals as they do towards the end of the year. Typically the first quarter is some 20-30% below the fourth quarter, so we do not read a 15% decrease as a sign of a slowing market. We expect investment activity to increase throughout the year. Already a number of transactions over €100 million and portfolio deals are under offer in the market. We estimate that direct commercial European real estate transaction volumes will reach at least €90 billion for the full year. This will be around 30% higher than 2009.”

Nigel Roberts, Chairman of EMEA Research, Jones Lang LaSalle said: “The strengthening investor interest for good quality real estate has clearly been demonstrated by movement in prime office yields which compressed in the majority of the European markets in Q1 2010. London prime yields moved in by 50 basis points and continental European markets between 10-50 basis points with only a handful of markets remaining stable.”

Nigel Roberts continued: “Whilst economic recovery still remains fragile, business confidence is generally rising and with improved credit conditions the demand for real estate from core investors is driving down yields. In the short term interest rates still offer positive cash flow opportunities for leveraged buyers but longer term investors will be looking for improving fundaments translating into stronger rental markets.”
NB: Data excludes residential and land acquisitions as well as developments. All deals included are above $5 million
Data excludes platform / corporate transactions
Source: Jones Lang LaSalle, Property Data, Akershus Eiendom, Athens Economics April 2010
 
 

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing 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 2009 global revenue of $2.5 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 130 million square meters 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 $40 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, 2009 and 2010 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit our Web site http://www.joneslanglasalle.ru