RCA Insights

European Deal Activity Wanes in First Quarter

By 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.

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If you are a current RCA subscriber log into your account to download the Q1’18 edition of Europe Capital Trends. To receive information about becoming an RCA client, contact us

Tom Leahy

Tom Leahy

Senior Director, EMEA Analytics

Tom Leahy joined RCA in 2014. In his role as Senior Director for the EMEA region, Tom is responsible for the development and expansion of the market analytics service for RCA’s European clients.

Prior to joining RCA, Tom was an Associate Director and then Head of Research at UK-based property consultancy, Lambert Smith Hampton. He started his career as an analyst at research consultancy Property Market Analysis (PMA).