LONDON-Europe’s economic recovery is on track despite the noise from a volatile euro and the sovereign debt crisis in Greece, says LaSalle Investment Management. European office markets will recover in the next 12-24 months and prime rent growth will become more prevalent, extending beyond London which has seen most gains so far.

The main European economies of Germany, France and the UK, plus most of northern Europe, are seeing increases in output again after the 2008/09 collapse. Central and eastern Europe is taking longer to turn the corner, with a number of nations struggling to expand - though growth should return in 2011. Poland is an outlier, having avoided recession.

The conclusions were contained in an interim update following the company’s Investment Strategy Annual in December 2009. At the halfway point of 2010, said the group: “Each country is responding differently to the various stimulus packages .. in response to the financial panic and subsequent economic collapse of 2008-2009. The performance of investment real estate also varies greatly from market to market. The 2008-2009 credit crisis was nearly synchronous across the developed markets of the world. The recovery is not.”