Leaseurope, the trade association representing the European leasing and automotive rental industry, has released the results of its preliminary survey of the European leasing market for 2011.

The survey indicated that new leasing business in Europe increased by 7.3% in 2011, reaching a total value of new business for those countries reporting of €222 billion ($295 billion), compared to €208 billion in 2010. Leaseurope notes that growth rates are based on sample of 26 member associations reporting in the 2011 preliminary survey.

Leaseeurope said these strong results indicate that European lessors have continued to build upon the momentum towards recovery, which began in 2010.

New leasing business for equipment and vehicles showed strong growth in 2011 of 8.4% and 11.7% respectively. Real estate leasing however, experienced a decline of 13.0%, largely due to contractions in Italy and France, the largest real estate leasing markets in Europe.

While there was good performance in the European market overall, the survey shows divergences across regions and asset types. Germany, France and Austria saw a growth recovery in 2011 across all categories except real estate. The Nordic countries and the UK saw a decline in new equipment leasing, although this was counterbalanced by growth in vehicle leasing, resulting in positive overall growth.

Leaseurope’s chairman, Jukka Salonen (CEO/Nordea Finance), welcomed the preliminary 2011 results and said, “It is very encouraging to see that the industry has continued its recovery into 2011 and improved on the growth figures of 2010. During very uncertain and trying times, the industry has
shown its robustness and continues to rise to the challenges the current European economic climate presents. There is no doubt that leasing plays a crucial role in financing fixed capital investment for European businesses, especially for SME’s, as shown by the latest Leaseurope/Oxford Economics
report4. Leasing has the potential to fill the gap when these firms are facing capital constraints, and will therefore continue to be an important part of economic recovery in 2012.”

To read the full Leaseurope news release click here.