By Tom Leahy on May 3rd, 2018
After a record fourth quarter, Europe’s commercial real estate investment market paused in the first three months of 2018, the latest edition of Europe Capital Trends shows.
Investment volume fell by almost 30% in comparison with the same period 12 months ago and the slowdown was experienced across all asset classes with the exception of the hotel sector. Of the three main commercial property types, offices saw the biggest year-over-year fall at almost 40%.
On a geographical basis, 16 of the top 20 markets saw a decrease in investment in Q1’18 versus a year earlier. Germany, France and Spain all recorded a year-over-year slowing of close to 40%. Deal activity in Poland, by contrast, soared.
Despite the slump in investment volume, a preliminary update of the RCA CPPI indicates strong price growth in markets such as Germany. This suggests that while some of the positive momentum gained after the record Q4’17 has dissipated, it has not disappeared altogether.