European investment on the continent was unaffected by the credit crunch according to research from CB Richard Ellis.
Austria, Netherlands and Spain found investment levels in the final three months of 2007 were up on the same period in 2006 despite the UK seeing a drop of more than a third in the same period.
Quarter four statistics for the European market as a whole, including the UK’s figures, saw a drop by a third to E47.2bn (£35.1bn) but overall investment turnover in 2007 saw a 2.6% increase compared to 2006 despite half the year being effected by the credit crunch.
France and Germany have seen a large increase in the number of investment transactions and now represent 36% of the European total with the UK accounting for around 30% of all transactions.
Jonathan Hull, CBRE’s executive director of capital markets across Europe, Middle East and Africa, said: ‘The UK market is the most mature and transparent market in the region and has felt the correction in pricing in response to credit constraints, resulting in the expected decline in investment activity in Q4 2007.’
Michael Haddock, research director at CBRE, said: ‘Looking forward, the impact of the credit squeeze on investment turnover is likely to continue into the first half of 2008. Despite the expected fall in activity between 2007 and 2008, equity-rich investors such as the German open-ended funds and sovereign wealth funds are expected to support market activity in Europe this year.’