RCA Insights

Chart: Cross-Border Weighting of Europe’s Top Markets

By on March 25th, 2020

There is little doubt that the ongoing virus-focused restrictions on the movement of people will impede the flow of investment capital between countries and continents.

In the chart below we show selected top markets in Europe with the proportions of domestic versus cross-border capital. Any prolonged absence of overseas investors will likely impact some markets more than others.

Central London has a 75:25 split between overseas and domestic buyers. The U.K.’s large domestic investor base means that a withdrawal by cross-border buyers could eventually, when we see a return to normality, present opportunities for domestic investors or overseas players with a local presence.

The risk of dislocation is more acute in the markets that are not global gateway cities. In smaller markets such as Warsaw, Lisbon and Helsinki, where recent inflows of capital have driven up liquidity, there is only a slender domestic investor base to pick up the slack.

The next edition of the RCA Capital Liquidity Scores will be released later this month. If you are interested to learn more about this report and other Real Capital Analytics publications, please contact us.

To read our latest analysis and commentaries on the impact of the coronavirus on global property markets, go to rcanalytics.com/coronavirus

Also on RCA Insights:

First Signals on Deal Activity Amid Virus Disquiet

Chart: Global Commercial Property Price Trends Since ’07

Tom Leahy

Tom Leahy

Senior Director, EMEA Analytics
tleahy@rcanalytics.com

Tom 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).