Commercial property investment jumps 44pc

Grand canal in Dublin,w here office rents have grown by a third Photo: Giuseppe Milo

The first edition of the agent's European Quarterly shows that investment volume rose significantly in the second quarter of 2014. A total of €42 billion was spent on commercial real estate in the three months to June, 44 per cent higher than the same period of 2013.

Investment was not just focused on one city or country, but was spread across London, Paris, Tier 1 German cities and smaller markets, such as the Benelux, which Knight Frank notes as offering stronger yields. The largest growth was recorded in Ireland, the Netherlands and Spain, with investment up 92 per cent, 97 per cent and 94 per cent year-on-year respectively. Dublin has seen "exceptional rental growth" of 33 per cent in the last 12 months, while Madrid office rents have grown for the first time in five years.

Activity is expected to stay strong during the second half of the year, predicts Knight Frank, driven by established investors but also by newcomers from Asia and the Middle East. Year-on-year, 2014's total commercial property investment in Europe is expected to surpass last year without any difficulty.