RCA Insights

Global Liquidity Shrinks But Some Postive Signs in Q4 2020

By on March 4th, 2021

Commercial property market liquidity at the end of 2020 was below the levels from a year prior in 126 out of 155 markets worldwide, the latest update of the RCA Capital Liquidity Scores shows. The count of markets with scores falling on an annual basis was the highest since the end of 2009, during the Global Financial Crisis.

However, there are signs of optimism. Firstly, in 35 of the global markets tracked the scores improved from the third into the final quarter of the year. Secondly, while liquidity has shrunk in 2020, levels are still well above those seen during the GFC. This relative resilience is reflected it the pricing for commercial assets, which appreciated across the majority of global metros in 2020.

liquidity trends in global markets over time

The new report also shows that Central Paris retained its position as the most liquid market in the world in the fourth quarter of 2020, while Central London placed at #11 in the ranks. Manhattan’s score dropped below that of Boston for the first time, while in Asia, Hong Kong’s score improved from the third quarter into close of the year.

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To learn more about RCA Capital Liquidity Scores and how this data 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:

Dynamics and Dynamism of the World’s #1 Office Market

Global Commercial Property Prices Rise 3.1% in 2020

These Were The Largest Property Markets Worldwide in 2020

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Tom Leahy

Tom Leahy

Senior Director, EMEA Analytics
tleahy@rcanalytics.com

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).