CB Richard Ellis Group, Inc. announced that European commercial real estate investment turnover slowed to €19.5 billion in Q4 2008, following two consecutive quarters of more stabilised turnover levels of around €27-28 billion. This brings the total 2008 turnover to €116 billion, a level comparable with that registered in 2004.
Almost every market saw a decline in activity compared to the third quarter 2008. The contrast between Q3 and Q4 was heavily influenced by the collapse of Lehman Brothers and the deepening of the credit market turmoil, which had a negative impact on investor confidence. Furthermore, by the end of the third quarter, the credit crunch had taken its toll on the broader economy, with many European countries slipping into negative economic growth and 2009 forecasts signaling recession.