Does the return of the marquee property deal signal a much-needed revival?

If there's one practice in desperate need of a boost, it's real estate. With the sector the first to feel the pain of the credit crunch, deals have been painfully thin on the ground for two years now. And news last month that Eversheds was to make more property job cuts was a reminder that many are not expecting a rapid rebound.

But those real estate advisers lucky enough to still have a job may be able to start breathing a little more easily as the signs are finally pointing towards some form of recovery in the commercial property sector. In particular, Blackstone Group's joint venture with British Land in the £2.13bn Broadgate Circle estate in London was probably the most visible indication of the kind of trophy deal that has been missing but there have been some other signs.

The deal, which generated roles for SJ Berwin, Simpson Thacher & Bartlett and Berwin Leighton Paisner among others, was quickly followed by Land Securities' £210m sale of its stake in the Birmingham Bullring to an Australian investment fund, securing lead roles for Lovells and Nabarro. With reports that HSBC tower in Canary Wharf is set to be sold for the third time in two years, with bids reportedly emerging for a £800m price tag, there could be more marquee deals in the pipeline.

Equally, last week's fundraisings at housebuilders Barratt Developments and Redrow as well as Liberty International have been received as evidence of developers sorting out their finances and positioning themselves for future investments. By a similar token, the debt restructuring at Minerva suggests the sector is dealing with its woes.

And with property share prices having sharply rebounded since March and renewed leasing interest in central London, real estate partners across the City are starting to feel a little more positive.

The deals happening now, many of which are the result of months of stalled negotiations, suggest that investors at last believe the UK real estate market has reached – and probably just about passed – its bottom. As Lovells' Michael Stancombe comments: "In the last three or four weeks there has been a surge of activity. Overseas money is showing great confidence in the UK investment market."

Not that the sector is out of the woods. While a handful of headline deals in a badly battered sector can only be good for confidence, there is at best only a modest revival in the bread-and-butter work that drives large property practices. And so far interest has been restricted to prime market property, with the situation less certain for those with lower-tier real estate.

In short, while the sector is taking its first steps towards recovery, and there may be enough deals to keep whip-cracking management away from partners for the time being, it's going to be a long while before lawyers get to enjoy another boom. As one real estate head comments: "The last few weeks show there is appetite for trophy deals, but it's the volume that's the real issue. We're still nothing like 2006-07 and it's going to be a very long time until we get back there, as that level of leverage isn't going to come back."

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