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According to a new report to be released later this month from global real estate adviser Cushman & Wakefield, “A total of €62.8 billion of commercial property was traded in Europe in the 3rd quarter 2007, 23% ahead of the same period in 2006.”

The report warns, however, that despite strong activity and buoyant rental growth, a clear step change has now taken place with investment yields rising for the first time since 2003. The outlook is for a slowing in investment activity into 2008.

As a result of strong investment activity to date, Cushman & Wakefield is expecting 2007 to be another record year and are forecasting that investment volumes will total €235-240bn (€236bn in 2006).

David Hutchings, Head of European Research at Cushman & Wakefield, commented, “The hard work in reaching this total was done during the first seven months of the year. While there was plenty of momentum spilling over into the third quarter, we saw the flow of new deals grinding to a halt in late August and September.”

Cushman & Wakefield expects the final quarter of 2007 to be markedly slower, with a total deal volume of €54-58bn forecast, 8-10% down on the average of the previous three quarters and 30-35% below the record Q4 seen in 2006.

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