RCA Insights

Count of European Deals Sags in Q1; Volume Holds Up

By on April 27th, 2020

European commercial real estate investment volume in the first quarter of 2020 was higher than the same period one year ago, with most deals completed well before the COVID-19 crisis reached an acute phase in March, Real Capital Analytics data shows. However, the overall count of deals dropped.

An analysis of completed transactions by deal size shows a sharp decline in the number of smaller transactions in the first quarter, while the count of larger deals increased. This seems to indicate that those transactions with greater momentum – that have been in the pipeline for longer and are likely more complex – have completed. The trend may presage a slowdown in the second quarter as the lockdown and resultant economic fallout put the much of the market on hold.

RCA will publish the Q1 2020 edition of Europe Capital Trends on Wednesday April 29th. This report examines pricing and deal activity trends for all the major property types and markets and discusses the outlook for European commercial real estate amidst the coronavirus crisis.

Also on RCA Insights:

Chart: Most Liquid Markets in Europe Before Lockdown

Chart: Global Activity Tracker; Weakness Spreading

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).