RCA Insights

Liquidity Declines in 118 of 155 Global Markets in Q3 2020

By on December 2nd, 2020

Market liquidity fell in 118 of 155 global commercial real estate markets in the third quarter of 2020, a widening swathe of liquidity declines than seen in the second quarter of the year, according to the latest update of the RCA Capital Liquidity Scores. The tally of markets posting decreasing levels of liquidity from the prior quarter is the highest since early 2009 during the Global Financial Crisis.

Few North American markets escaped the slide. Manhattan’s liquidity score was already ebbing from its mid-2019 peak, but the pandemic has accelerated the downward move. The market finished Q3 2020 with a decade-low score and ranked as the third most liquid market globally.

global capital liquidity scores Q3 2020

Central Paris remains the most liquid market in the world, with its score falling off only slightly since the first quarter of 2020. Berlin, Munich and Frankfurt also featured in the top five most liquid markets globally in the third quarter.

Liquidity in all of the largest Asia Pacific markets continued to drift down. Sydney was the most liquid market in the region, and its global ranking increased to #8 from #12 at the start of the year as other markets were subject to larger declines in score. The plummeting count of active buyers in Hong Kong has dragged down its liquidity score, which now ranks below that of Beijing for the first time.


The RCA Capital Liquidity Scores are calculated using a combination of absolute and relative measures. The absolute measures are transaction volume and count of unique buyers. The relative measures are shares of: global cross-border investment; zone market maker investment; global market maker investment; and, institutional investment.

To learn more about this data and how it can help inform your investment decisions, contact us. Clients can access the latest RCA Capital Liquidity Scores report via the RCA client website.

Also on RCA Insights:

Global Commercial Property Sales Fall Sharply Again in Q3

These Are The Most Active Global Markets in 2020 So Far

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Tom Leahy

Tom Leahy

Senior Director, EMEA Analytics

Tom Leahy joined RCA in 2014. In his role as Senior Director for the EMEA region, Tom is responsible for the development and expansion of the market analytics service for RCA’s European clients.

Prior to joining RCA, Tom was an Associate Director and then Head of Research at UK-based property consultancy, Lambert Smith Hampton. He started his career as an analyst at research consultancy Property Market Analysis (PMA).