11:32 | 23.06.09
By Neil Spike
Europe's first quarter investment volumes this year fell 74% on the opening period of last year with a total trading volume of just €11.4bn 'with no market unscathed', says Cushman & Wakefield.
Prime yields have risen 28 basis points to 7.5% in an investment trading update published today, their highest level for nearly 5 years and 139 basis points up since 2007.
However it said while yields moved out sharply across the region the pace of change was not quite as marked as in the final quarter of 2008. "Western European yields rose 18 basis points, compared to a 30 basis points rise in late 2008 – but much of this reflected a stabilisation in the UK", it said. "Excluding the UK, countries including Finland, France, Ireland, the Netherlands and Portugal saw the strongest increase in yields."
Cushman & Wakefield said Europe was also hit by an acceleration in the decline of the occupational sector, with rents under pressure in most areas. Cushman reports that rents are down in 24 of the 32 countries examined, led by falls in Eastern European countries.
"The combination of these factors left capital values across Europe down 18.5% over the year", they said.
However, Cushman & Wakefield also said that a number of markets are reporting renewed interest from some domestic high net worth individuals and families, as well as local institutions.