Investment in commercial property investment in the UK fell in the first quarter of 2017, probably due to Brexit concerns, but France also recorded a substantial fall, the latest analysis report shows.

Overall European commercial property investment volumes eased to €44.2 billion in the first three months of the year, a fall of 8.3% compared to the first quarter of 2016 but this followed a strong end to 2016, according to the research from international real estate firm Knight Frank.

On a year on year basis, investment activity was down in the first quarter in France by 33.2% and in the UK by 22.1%. The slowdown in France reflected investor caution in the run-up to the presidential election, while UK investment activity continued to be influenced by uncertainty around Brexit.

But the report pointed out that the overall decrease in UK volumes belied an upturn in the London office sector, driven by overseas buyers from Hong Kong, China and Germany.

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Source: Property Wire