First-quarter commercial property investment in Europe has fallen by 40% year on year as Brexit-fueled uncertainty continues, according to the latest data from Real Capital Analytics.
The research company put the fall in volume down to continued volatility in financial markets across Europe prompted by fears of Brexit.
Below-average yields in the UK, along with Brexit uncertainty, RCA said, have combined to suppress activity.
In total €46.7bn (£41bn) of assets exchanged hand over the quarter, down from €77.6bn in the first quarter of 2015.
Some regions bucked the trend, however, with Finland and Poland up their 2015 Q1 volumes.
Sectors, rather than regions, attracted investor interest over the quarter with industrials picking up by 8% in volume year on year to €6.2bn.
The largest transaction over the period was Brookfield and partner Korea Investment Corporation’s €1.28bn purchase of Potsdamer Platz in Berlin.
Tom Leahy, director of EMEA analytics at RCA, said: “While Europe’s real estate markets still present pockets of value and opportunities for investors, it’s unlikely that transaction volumes will eclipse the levels that we saw last year in the light of the uncertainty factors like the Brexit vote have cast over the market. A second-half rebound in the event of a remain vote is not off the cards, though.”