The All Property average is down by 46 bps over the last four quarters and the rate of decline has accelerated in 2015, despite the growing expectation that short term interest rates might finally start increasing in the next few months. Investment in European commercial real estate continues to grow, adding €62bn in Q3, up 18% from the same quarter in 2014. The most noteworthy growth was in France, where investment nearly doubled, to over €7bn, largely driven by domestic investors. In Germany, however, residential property prices fell for a second consecutive quarter, with average house price declines of more than 10% across all German cities and towns. "This current trend is set to continue and we believe we will see a strong year end in terms of investment volumes,’ said Jonathan Hull, Managing Director, EMEA Capital Markets at CBRE.
Investment in European commercial real estate continues to grow, adding €62bn in Q3, up 18% from the same quarter in 2014. The most noteworthy growth was in France, where investment nearly doubled, to over €7bn, largely driven by domestic investors. In Germany, however, residential property prices fell for a second consecutive quarter, with average house price declines of more than 10% across all German cities and towns. "This current trend is set to continue and we believe we will see a strong year end in terms of investment volumes,’ said Jonathan Hull, Managing Director, EMEA Capital Markets at CBRE.