Commercial Property Sales to Boom in 2010
Commercial property investors have grown tired of credit crunching and look set to bounce back in 2010, as transactions across Europe, the Middle East and Africa are predicted to rise by 30%, new research has revealed.
The optimistic outlook follows a promising first three months of the year for the commercial market, as total property transactions reached £17.6 billion, up 75% on early 2009.
But, while the figure was 15% lower than the £25 billion spent at the end of last year, Britain is leading the way amongst those researched, accounting for more than one third of transactions in the first figures of 2010.
“The first quarter of the year is typically one of the slowest quarters,” explained Richard Bloxam, Director of international property firm, Jones Lang LaSalle. “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% to 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 €100m (£87.6m) and portfolio deals are under offer in the market.”
While trepidation still exists within the country’s economic and commercial markets, such promising signs will go a long way in calming fears of a double-dip recession, and encourage investors back from the wilderness.
“We estimate that direct commercial European real estate transaction volumes will reach at least €90 billion (£78.9 billion) for the full year,” added Mr Bloxam. “This will be around 30% higher than 2009.”