European retail property transaction volumes doubled in the first half of this year to €10.6bn, according to figures from Jones Lang LaSalle.
It compares with just €5bn transacted in the first half of last year.
Deals in Q2 totalled €4.9bn with the average lot size remaining relatively stable at €50m.
Investors remained focused on the three largest European markets; the
Whilst Germany saw the greatest volume traded in Q1 (€2.3bn), ahead of the UK for the first time in a decade, the UK regained its number one position in Q2 with €2bn traded, more than 40% of the total volume and number of deals during this period.
David Raven, head of Shopping Centre Investment at JLL, said: “During the first half of 2010, vendors began releasing stock onto the market to match the investor demand targeting the sector.
“Pricing has moved considerably with values jumping some 25% over the past year as a result of yield compression alone.
“Institutional investors have dominated purchasing over the first half of the year.
“Looking forward we anticipate that debt based property companies and opportunity funds will dominate buying activity; this will require banks to begin lending on less prime assets.
“The majority of selling over the second half of the year is anticipated to be undertaken by or at least directed by banks resolving some of their distressed positions.”
nathan.cross@estatesgazette.com
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