By Real Capital Analytics 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The slowdown in the flow of transactions in March and an increase in the proportion of withdrawn deals indicate that the European commercial property market is heading into a period of the unknown, the new edition of Europe Capital Trends reports.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 So far the majority of the withdrawn deals were in the office sector.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.
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