Property investment volumes in Spain fall

The amount of money being ploughed into the Spanish commercial real estate sector has fallen considerably during the first half of this year, new research has revealed.

Figures published by CB Richard Ellis (CBRE) showed that investment volumes were down by 40 per cent in the six months from January to June, compared to the period between July and December in 2010.

Dr Peter Damesick, chief economist of Europe, Middle East and Africa at CBRE, told delegates at the Expo Real conference that many investors are focusing on "prime quality assets in core markets".

But he noted that the reduction in the amount of money entering the sector is not restricted to Spain: "Total transaction activity in European real estate has slowed during 2011, especially in southern European markets where sovereign debt problems are greatest," Dr Damesick stated.

Earlier this week, the Financial Times reported that there is a widening "valuation gap" between the price that banks are asking for commercial properties in Spain and the amount investors are willing to pay for these assets.