RCA Insights

Deal Activity in Europe Slips in Q2; UK Slides

By on August 2nd, 2019

European commercial property investment fell again in the second quarter of 2019, though the decline was shallower than that seen at the start of the year, the latest edition of Europe Capital Trends shows. The U.K. led the slowdown as deepening Brexit concern and retail sector woes dragged on investment activity.

Weakening economic sentiment, political uncertainty, high pricing, a shortage of suitable assets and structural shifts in demand have all contributed to the slowdown in European property investment through the first half of 2019. Total investment volume for Europe fell 10% year-over-year in the second quarter, compared with a 20% decline seen in the first quarter.

In the U.K., total acquisitions dropped by 46% year-over-year in the second quarter, making it the slowest three-month period for investment since 2012. For the first half of 2019, U.K. institutions spent more in continental Europe than at home.

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Also on RCA Insights:

Chart: Europe’s Retail Volumes and Online Spending

UK Politics Wracked With Turmoil But CRE Prices Aren’t

Tom Leahy

Tom Leahy

Executive Director, MSCI Research
tom.leahy@msci.com

Tom leads European commercial property real estate research, focusing on capital markets. A regular speaker at industry and client events, he is the chief author of quarterly reports on European and global market trends and capital market liquidity. He joined MSCI in 2021 through its acquisition of Real Capital Analytics. Based in London, he previously he worked in research at two U.K. property consultancies. He holds a bachelor’s degree from Durham University.