RCA Insights

Chart: Waning Momentum of European Office Markets

By on September 9th, 2019

The latest quarterly volume and pricing data show that the very strong momentum that had built up in Europe’s core office markets is waning. This is largely due to the combination of very high pricing, political uncertainties and slowing economic growth.

In both U.K. markets shown, office deal volume and prices fell in the first half of 2019 versus a year ago. This is most notable in Central London, where investors have reacted to the continual uncertainty surrounding Brexit. Growth in investment has either flattened or gone into reverse in other core markets too though, and this is also accompanied by a slowing in the rate of price growth.

Of course, some markets have bucked the trend, particularly Warsaw, Madrid and Berlin. In Dublin, volume was down slightly in H1 2019, but it is still elevated at current levels. In response to this strong investor demand and a robust occupier market, Dublin office prices have grown by almost 30% in the last 12 months, as measured by RCA’s Hedonic Series PPU data.

1909 Europe OFF momentum COTW MAIN-01

To learn more about the RCA Hedonic Series contact us. If you are an RCA client you can access this pricing dataset on TrendTracker and via the Standardized Downloads. 

Also on RCA Insights:

Chart: Hong Kong Historic Investment Trends

Chart: Europe’s Retail Volumes and Online Spending

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).