By Tom Leahy on January 28th, 2019
Germany’s commercial property market had its strongest ever quarter at the end of 2018 while U.K. activity slipped to its lowest level since 2016, according to Real Capital Analytics data.
Germany has been a beneficiary of the ongoing ambiguity regarding the nature of the U.K.’s exit from the European Union, and more than €24.7 billion ($28.3 billion) of deals completed in the last three months of 2018, RCA figures show.
In the U.K., by contrast, just over €14 billion was spent by property investors between October and December. The fourth quarter is typically the busiest time of the year for deals, but Q4’18 was the slowest quarter of 2018 and the quietest end to a year since 2012.
Brexit uncertainty and ongoing retail sector woes are factors in the U.K.’s weakness. The fourth quarter of 2018 was the second-slowest quarter ever for retail property investment in the U.K.
Real Capital Analytics will report on the contrasts between the U.K. and German property markets and investment patterns across Europe in the next edition of Europe Capital Trends, which will be published January 30. If you are interested to learn more about RCA publications, data and tools, contact us.