A lack of prime properties in Europe is stalling the recovery of the global real estate market, it has been suggested. The latest research from real estate consultancy Jones Lang LaSalle has found that total investment in commercial property during the third quarter of 2010 stood at USD 69 billion.
The news means that investment volumes in the first nine months of this year have reached USD 202 billion, higher than the USD 139 billion made during the same period in 2009.
But the findings also suggest deal volumes have reached a plateau, and Jones Lang LaSalle is attributing this to a lack of prime assets coming to the market in Europe. This is also leading to yield compressions across many of the leading office markets, the organisation claimed.
Arthur de Haast, head of the international capital group at Jones Lang LaSalle, said: "A significant weight of equity capital is targeting prime assets across all sectors, but a scarcity of prime product for sale is constraining investment volumes."