Investment volumes in Europe, the Middle East and Africa (EMEA) stagnated at $34 bn (EUR 24 bn) in the second quarter of 2011 compared with Q1 but were slightly up on the year-earlier level, according to preliminary findings from property adviser Jones Lang LaSalle and not CBRE as incorrectly stated in the headline of Tuesday's newsletter.

JLL said a strong upswing in the Nordics and Russia was offset by a modest cooling-off in the UK and a bigger slowdown amid the troubled southern periphery, with the notable exception of Italy, which experienced a slightly smaller dip. Activity in the Middle East remained muted with the region being more notable as a source of capital.

Global direct real estate investment volumes totalled more than $101 bn in Q2, up 7% from the previous three months and an increase of 47% on the year-earlier period. However JLL warned that the outlook was overshadowed by debt concerns in some advanced economies and the risk of overheating in some emerging markets which would induce caution and careful asset selection. Nevertheless, JLL said it was confident that full-year volumes would hit its forecast of $440 bn based on the pipeline of product in the market.

JLL's Global Capital Markets Research Director Paul Guest said: 'Our forecast calls for a further $240 bn to transact in the second half. There are several supportive factors to note: Japan will rebound from March’s natural disasters; there is additional bank product coming up for sale in Europe and the United States, some of it very good quality; and the large emerging markets appear to be absorbing the impact of regulatory measures without a ‘hard landing’. Nonetheless, the rate of growth has started to decelerate and this will continue, particularly as central banks continue to tighten around the world.'

The Americas experienced the most property trading activity in Q2 since late 2007, with all sectors experiencing strong growth due to the increased debt availability and a hunger among investors for yield options in the very low interest rate environment. Volumes for the region rose 56% from the first quarter to $49 bn. Canada also saw a sharp bounce, with activity more than tripling from first quarter 2011. Volumes in Asia Pacific tumbled 30% in Q2 compared with the previous quarter as the aftermath of the natural disasters in Japan aggravated a normal seasonal slowdown.