European investment activity in commercial real estate totaled €56.8bn in the second quarter of this year, a 9% increase on the first quarter, according to new research from Cushman & Wakefield.

Despite the increase, the level of trading in the first half of the year totaled €109bn, 12% down on the same period in 2015, with the UK – Europe’s largest market – acting as a drag on overall European performance.

Concern over Brexit and uncertainty surrounding the decision was a significant factor in restricting the volume of trading in the UK to €32bn in the first half of the year, a 35% decrease on the same period a year ago.

Nigel Almond, head of EMEA capital markets research at Cushman & Wakefield, said: “After excluding pan-European portfolios, activity across Continental Europe continues to shine with volumes in the first half of 2016 reaching €77bn, a 3% increase on the €74bn recorded in the same period last year.” 

A spike in investment activity in Sweden has seen trading surpass French volumes in Q2 and over H1 2016. At €7.3bn Sweden registered its highest-ever quarterly volumes pushing up volumes for the half year to €10.6bn.