RCA Insights

European Dealmaking Heads Into Period of Unknown

By on April 30th, 2020

The slowdown in the flow of transactions in March and an increase in the proportion of withdrawn deals indicate that the European commercial property market is heading into a period of the unknown, the new edition of Europe Capital Trends reports. In addition, a jump in the volume of deals in contract suggests deals are being put on hold.

For the year to date, collapsed deals and pulled offers represented 3% of all closed transactions, the highest this measure has been since 2015. So far the majority of the withdrawn deals were in the office sector.

Overall investment volume in Europe in Q1 2020 was 7% higher than Q1 2019, though activity in March was lower in terms of both deal volume and deal count. The impact of COVID-19 and its financial and economic toll are likely to be seen in second quarter investment tallies, the report said.

Real Capital Analytics clients can access the latest Europe Capital Trends report and view the webinar presented by Simon Mallinson and Tom Leahy via the RCA website. If you are not yet a client and would like to learn more about our reports, data and analytical tools, please contact us.

 

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