RCA Insights

Europe Stumbles Into ’19; Apartments Gain on Retail

By on May 2nd, 2019

Europe’s major property markets stumbled in the first quarter of 2019, as high pricing, difficulty in sourcing suitable assets, and political and economic uncertainty weighed on activity. Amid the slowdown, the apartment sector consolidated its position as Europe’s second largest asset class ahead of the troubled retail sector, the latest edition of Europe Capital Trends shows.

In the first quarter of 2019 investors spent €2 billion ($2.4 billion) more on apartments than they did on retail properties. The change in relative investor appetites registered in annual volumes for the first time in 2018. Offices remain the biggest asset class in Europe.

At the vanguard of this trend is the U.K., where quarterly retail investment slumped to its lowest ever level at the start of the year. Here, the market was sustained by investment outside of the traditional commercial sectors and into property types including apartment and hotels. These non-traditional assets accounted for more than 50% of the U.K. commercial real estate volume in the first quarter.

1905 ECT overview MAIN-01

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Also on RCA Insights:

US Commercial Real Estate Endures Bumpy Ride in Q1

Liquidity in Dublin at Post-Financial Crisis Record

 

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).