European commercial property set to attract investment

Following the downturn in the investment in property in 2008, new research shows investment in commercial property across Europe could soar this year.

Real estate broker, Jones Lang LaSalle, says it expects EUR50 billion to be invested in European commercial property in 2009, as the reduced prices attract sovereign wealth funds and open and closed-ended funds.

Despite the value of central london commercial property falling as much as 30% in 2008, there may be an upturn in 2009. "The positive news is that despite the lack of available credit from banks, yields, especially for short-dated income stream stock, have reacted sharply in Q4," according to property agent, Cushman & Wakefield.

Jones Lang LaSalle’s chairman, Nigel Roberts, says london can expect increased investment in 2009, “some markets like london, Paris and Madrid are well advanced in their market corrections and will no doubt attract increased investor interest if the fundamentals are judged to support the new price levels."

More should be revealed on 15 January when Investment property Databank releases its index representing the annual movement of the value of real estate in 2008.