RCA Insights

European Volume Grows in 2017, Boosted by Big Deals, RCA Report Shows

By on February 1st, 2018

Europe’s commercial property investment market returned to growth in 2017, registering the third strongest year on record, the latest edition of Europe Capital Trends shows. Investment volume rose by 4% from a year earlier, bolstered by a slew of large transactions. The U.K. regained its title as Europe’s largest market.

Deals of over €500m in value accounted for almost one quarter of 2017 acquisition volume, which highlights both the excess of capital targeting the market and the difficulty investors have trying to access stock. The volume of entity and portfolio deals was at the highest level recorded, with investors keen to quickly gain scale in certain markets.

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Several countries registered record years for investment. The Sponda deal in Finland signified a major push from institutional investors to buy stock in a market that had spent years in the doldrums. The Dutch and Spanish markets, meanwhile, have gone from strength to strength, with prices in Amsterdam now above their previous peak for the first time since the Global Financial Crisis.

In the U.K., investment volume increased by 12% following 2016’s Brexit-related lull. Both the U.K. and Germany recorded activity more than double that of third-placed France where total volume was flat on the year. However, Emmanuel Macron’s presidency does appear to have had a galvanizing effect and acquisition activity in France was up 43% year-over-year in the fourth quarter.

Despite the high transaction volume figures, European investors have been struggling to place the amount of capital they have at their disposal and the tactics they are employing is just one of the issues we explore in our latest edition of Europe Capital Trends.

If you are a current RCA subscriber log into your account to download the 2017 Year in Review edition of Europe Capital Trends.

Tom Leahy

Tom Leahy

Senior Director, EMEA Analytics
tleahy@rcanalytics.com

Tom joined RCA in November 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).