European commercial real estate investment held up in the third quarter despite the turmoil in financial markets over the summer, according to the latest figures from Jones Lang LaSalle.

European volumes over Q3 rebounded following a slow second quarter with transaction volume totalling EUR 28.8 bn, reflecting an increase of 13% quarter-on-quarter and 26% year-on-year. As a result, year to date volumes are 21% ahead of the equivalent period last year, the global property adviser said.

Equity is continuing to target the sector and more supply is hitting the markets, JLL found. However, the increased uncertainty due to the eurozone debt crisis and a more restrictive debt environment has led to a reduced appetite to take on risk in real estate investment. In addition there is a current shortage of supply of prime property to the investment market. Consequently JLL expects full-year investment volumes to be up to 10% below its original EUR 130 bn outlook for 2011.