By Tom Leahy on April 28th, 2017
European commercial real estate investment dropped 16% in Q1’17 versus the same period a year ago, the new edition of Europe Capital Trends shows. This fifth negative quarterly outturn in succession might set some alarm bells ringing, especially with the perceived rise in political risk which has generated a significant amount of column inches over the last 12 months.
However, this headline decline hides the underlying strength in some markets, in particular Germany (investment levels up 33% YOY) and Spain (up 66% YOY). Even in other markets where volumes have fallen we are not seeing this slowdown feed through into softening prices.
With economic confidence in eurozone the highest it has been for a decade, European real estate’s attractiveness as an asset class is likely, in the short term at least, to outweigh the risks to the market posed by the politics.
If you are a current RCA subscriber log into your account to download the Q1’17 edition of Europe Capital Trends.