GLOBAL agency DTZ claims there are tentative signs of a stabilisation in Europe’s commercial real estate investment market, led by the UK.

Transaction volumes remained flat in the first quarter of 2009 at £3.5bn, compared to the final quarter of 2008.

This is reinforced, says DTZ, by the stabilisation in prime yields in some UK markets, such as central London.

Craig Barton, investment director at DTZ in the North West, said: “Since the turn of the year, both confidence and investor interest in the regional investment market has been steadily increasing. The recovery is being seen across all sectors for good-quality, well-let buildings. Indeed, for such opportunities, we have witnessed the first price rises in commercial property for nearly two years.”

In its study, the agency added: “These trends reflect the UK’s more advanced stage of correction and perhaps the depreciation of sterling which may have increased the attractiveness of the UK market for European investors.

“Nonetheless, across Europe, the deterioration has continued.”