Despite the deepening of the debt crisis, European property investment markets saw trading volumes rise in Q3 to EUR 28.8 bn, according to the latest research from Cushman & Wakefield. The figure represents a 5% increase on the previous quarter and a 12.3% rise on the year-to-date.

'Momentum has definitely slowed but values are stable and the market overall has held up well, particularly when you compare it with other asset classes,' said Michael Rhydderch, head of the European Capital Markets Group at C&W.

Risk, or rather risk avoidance, is a key factor, he added, not just in deciding what markets and sectors investors will go to, but also how quickly they will act and how they will finance a deal. 'Popular wisdom will tell you that we have seen a flight to quality focusing on core markets, but in reality it is not that black and white,' commented Rhydderch. 'Investors are clearly very discerning but many are looking for value, not just low risk.'

The top markets for growth in activity in the past quarter include France and Switzerland but also the Czech Republic, Poland, Hungary and Slovakia as investors have started to act in Central Europe. At the same time, Russia has accelerated into 5th place within Europe, up from 9th place last year, with trading activity ahead of the Central European four combined.