By Tom Leahy 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.
If you are a current Real Capital Analytics subscriber log into the RCA website to download the latest Europe Capital Trends. To learn more information about the advantages of being an RCA client, contact us.
Also on RCA Insights: