By Tom Leahy on April 20th, 2020
A record 2019 for European deal volume meant that many top property markets scored extremely well on RCA’s Capital Liquidity Scores in the latest Q4 2019 update. Of course, the world has changed beyond recognition since then, but RCA analysis shows that structurally more liquid markets outperformed during the last global downturn and were the first to regain prior pricing when the markets recovered. Therefore, a sense of where the markets were at the outset of the COVID-19 crisis is a useful predictor for how they may behave when we emerge.
The exception at the end of 2019 was Central London, where the liquidity score was at a 10-year low. The market peaked at the end of 2015, prior to the Brexit vote, and has been on a downward slope ever since. A nascent recovery in activity was evident post the Conservative election victory in December, but, in common with most other global commercial real estate markets, there has been a slowing from March onwards and this will likely to continue while restrictions remain in place and the economic and financial consequences of the pandemic play out.
The latest edition of the RCA Capital Liquidity Scores was released April 2. If you are a Real Capital Analytics client you can access the latest report and data file for 155 global markets on the RCA website. Readers who aren’t yet RCA clients can learn more about the advantages of RCA data, tools and reports by contacting us.
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