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

LONDON-Despite the absolute decline in retail investment across Europe in first half 2009, it still accounted for 35% of total European property investment, up from an average over last five years of 26%, says CB Richard Ellis. This is the highest proportion on record.

Very few large deals took place in 1H '09, and the average transaction size fell to €18.4 million, a 59% decline from the market peak in 1H '07, and eight of the top 10 transactions were retail. This included Europe's largest deal - the sale of the mostly retail Dawnay Day portfolio in the UK for over £600 million. The relative strength of the market for large retail lot-sizes has helped boost the sector's share and 56% of all deals over €100 million in 1H '09 were retail.

"The absence of good quality prime product on the market and ongoing restricted access to finance continues to slow any potential upturn in retail investment activity, " said CBRE's Retail Head John Welham. "However, as some funds come under pressure to spend allocated capital, we could well see activity levels pick-up in the more secondary segments of the market."