Europe

PROPERTY REPORT INVESTMENT IN EUROPE Q3 2009

ON THE ROAD TO SLOW RECOVERY

European economies have turned a corner in the recession. BNP Paribas Economic Research Survey data showed that after collapsing over the turn of the year, Euro area activity almost stabilised in the second quarter and should swing back to growth on a quarterly basis in the second half of the year. In the United Kingdom, GDP should even start expanding in Q4 2009. However, both in the Euro area and the United Kingdom, the growth recovery should be slow and erratic.

After six consecutive quarters of falls (since Q4 2007), the commercial real estate investment market is showing slight signs of recovery. In fact, for two consecutive quarters, the investment volume of the 25 cities monitored by BNP Paribas Real Estate research has been growing.

With a record low of €4bn during Q1 2009 and a weak €5.5bn in Q2 2009, the investment volume of the 25 cities monitored is heading back in the third quarter to a total of €8.4bn invested. This represents a rise of 53% compared to the previous quarter and only a slight decrease of 5% over Q3 2008. It is the start of a commercial real estate investment revival.

Author(s): several

Source: BNP Paribas Real Estate

Published: 04.11.2009