RCA Insights

Chart: How Experience Steers European Market Choice

By on September 24th, 2018

When investors decide where to buy office property in Europe, experience matters.

In the chart we have broken up the activity of non-European players by the number of years they have been active in the market and analyzed their office investment activity since the start of 2017. There is a notable relationship between geography and buyer experience: broadly, the more experienced you are, the more likely it is you will have bought in places other than London.

For the most experienced group of non-European property investors (10+ years experience), just 5% of the capital spent over this period was in London. Conversely, more than 60% of the money spent by the newcomers (0-1 years experience) was targeted at London.

More new money has come in to London in 2018. The most high-profile deal so far has been CK Asset’s acquisition of the UBS HQ for £1 billion ($1.3 billion) in June. The activity of new entrants has helped maintain liquidity and pricing at elevated levels since the Brexit vote in June 2016. The more experienced domestic and overseas players have largely adopted a wait-and-see approach.

1809 Experience dictates MAIN_150-01

This chart first appeared in the most recent edition of Europe Capital Trends. To learn about RCA’s suite of global reports, contact us. To receive RCA Insights in your email inbox, signup here

Tom Leahy

Tom Leahy

Senior Director, EMEA Analytics
tleahy@rcanalytics.com

Tom joined RCA in November 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).