RCA Insights

Chart: Global Activity Tracker, Europe Resists Drop

By on June 8th, 2020

Commercial real estate transaction volume in Europe is resisting the slide seen across the Americas and Asia Pacific in the first 150 days of 2020 due to a string of multibillion-euro deals. The latest Real Capital Analytics data reading indicates that transaction volume for Europe, Middle East and Africa (EMEA) is just 6% lower than 2019 levels, while in the Americas volume is 18% down and in Asia Pacific activity is 45% lower.

The volume of portfolio deals and entity-level deals in EMEA in the first 150 days of the year has surpassed that of the same period in 2019. Notable recent deals include Blackstone’s purchase of U.K. student housing portfolio iQ which closed in May. In the first quarter of the year, Aroundtown’s purchase of fellow German listed property company TLG added close to €5 billion ($5 billion) to the region’s tally.

In the Americas, the fallback in deal volume is deepening as the year progresses. At the end of April cumulative deal volume for the Americas was 3% lower. APAC activity has been consistently depressed since the start of 2020. Despite the easing of lockdowns and hopes for a rebound in China, the uncertainty remains, with fears of a second virus wave and additional political tensions.

Looking at the number of completed transactions, all regions have dropped by just over a third versus the previous year.

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The deal volume analysis uses a deal price floor of $10 million for comparability between global zones. The price threshold used for RCA’s US Capital Trends and Europe Capital Trends reports is lower.

Real Capital Analytics clients can access full analysis of May 2020 U.S. data on June 24 with the new edition of US Capital Trends. If you would like to learn more about how to receive Real Capital Analytics data and reports, please contact us.  

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