EDDAH: The EMEA region real estate investment market has essentially been flat over the past several quarters as capital values rose just 2.6 percent in Q1 2011 - slightly lower than its last reading, according to the latest research by leading global property adviser CB Richard Ellis (CBRE). EMEA continues to be affected by the European sovereign debt crisis, which is impeding much of the region's recovery; as a result, transaction volumes increased by just 35.4 percent y-o-y. EMEA recorded the greatest transaction volumes at US$41.9 billion in Q1 2011; however, this amount is below its quarterly average of $51.7 billion, which again reflects continued uncertainty and caution arising from the sovereign debt crisis. The limited number of active lenders has also hindered growth in investment activity in the EMEA region. The debt capital constraints, together with higher interest rates in the Eurozone, are restraining transaction levels. Nevertheless, EMEA's sales volume grew 35.4 percent y-o-y in Q1 2011. However, the most highly regarded markets, such as the United Kingdom, France, and Germany, are witnessing relatively stronger increases in capital values for prime properties. The global real estate investment market continues its path to recovery with both values and sales activity increasing in the first quarter of 2011, according to the latest research by leading global property adviser CB Richard Ellis (CBRE). The CBRE Global Office Capital Value Index increased 12 percent year over year (y-o-y) in Q1 representing a strengthening of the positive trend evident for the past three quarters. In the Americas, capital values increased by 9.5 percent, while the Asia Pacific region experienced strong growth of 18.9 percent. Global investment activity also continued to improve during Q1 2011, with investment volumes increasing by 22.9 percent y-o-y. The Americas experienced the most substantial increase of 77.2 percent y-o-y. Asia Pacific weathered devastating natural disasters in both Japan and New Zealand during Q1 2011 that hindered short-term quarterly investment volumes for the region as a whole and resulted in an increase of just 5.5 percent y-o-y. Dr. Raymond Torto, CBRE's Global Chief Economist, said: "The German market in particular has seen rapid growth in property investment turnover, perhaps influenced by the fact that its economy has been one of the most robust in the region over the last year; both local and international investors have been active, with the retail sector attracting a high share of investment activity. The Central and Eastern Europe (CEE) region also stands out, with investors attracted to the higher yields on prime property compared with the main Western European markets.
