Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

LONDON-Direct investment in commercial real estate in Europe fell strongly in the first half to reach €24 billion, down 42% on H2 2008, but activity probably reached a floor, and is likely to revive in the second half, says Jones Lang LaSalle.

"We believe the European market has now reached a floor in transaction volumes and based upon investor interest we expect an increase in turnover in the second half," said Tony Horrell, JLL Head of European Capital Markets. Prime office yields were largely stable in Q2 2009 for the first time since mid-2007.

Volumes remained low because bid-offer spreads remains wide in some markets due to price expectations and needs of owners. "At the same time, falls in capital values have made pricing attractive for investors with equity or buyers who are not highly leveraged and have good banking relationships," he added