By Tom Leahy 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.
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.
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