European commercial property investment 'rose 42% in December'

European commercial property investment rose dramatically in the final quarter of 2009, new research has highlighted.

The study by CB Richard Ellis (CBRE) revealed that investment turnover grew to €25.7 billion (£22.4 billion) over the three-month period, which represented a 42 per cent rise from the previous quarter.

According to the organisation, the rise, which is the largest since the collapse of Lehman Brothers, took the total 2009 turnover to €70 billion.

Michael Haddock, director of capital markets research for CBRE, said that, despite the increase in activity, much interest is still focused on "prime product and the most liquid markets".

He added: "As a result of tight supply and expanding demand there were further widespread falls in prime yields, although the spread between prime and secondary has increased."

Earlier this month, research by CBRE confirmed that widespread falls in prime yields were seen across the main European commercial property markets in the final three months of 2009.