RCA Insights

Global Commercial Real Estate Price Growth Slips in Q3

By on November 25th, 2020

The global rate of commercial property price growth waned in the third quarter of 2020 as transaction activity continued to stumble amid the worldwide health crisis, the latest RCA CPPI Global Cities report shows.

The RCA CPPI Global Cities Composite Index retreated to annual growth of 1.6%, the slowest rate since 2010. Prices fell versus a year ago in six of the 18 major global cities that contribute to the index. Eight posted a drop in prices between the second and third quarters of this year.

The fact that commercial property price growth remains in positive territory shows that while transaction activity is depressed, this downturn is not the same as the Global Financial Crisis. Investors remain on the hunt for quality assets and sellers are typically not being forced to offload properties.

rca cppi global cities Q3 2020

 

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To learn more about the RCA CPPI (Commercial Property Price Indices) and to sign up for reports visit rcanalytics.com. If you are an RCA customer you can access RCA CPPI reports and conduct your own pricing analysis on the RCA CPPI page of the client website.

More pricing analysis on RCA Insights:

Distress and Pricing in the US Commercial Property Market

Not Every Property Seller Is a Loser in the Covid Era

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Simon Mallinson

Executive Managing Director, EMEA & APAC
smallinson@rcanalytics.com

Simon Mallinson joined Real Capital Analytics in January 2013. Based in London, Simon has board level responsibility for EMEA and APAC, with a particular passion for the continued development of RCA’s industry-leading client service and capital markets analytics.

Previously, Simon was Senior Director leading European Research at Invesco Real Estate. Prior to Invesco, Simon held a number of roles with IPD (now part of MSCI) in London and the United States. As Head of US Services, based in Chicago, he established IPD’s first North American office.

Simon is a Board Member of US association NCREIF, a member of RICS and is active across a number of other global real estate associations. He holds degrees from both Leeds and Manchester University, UK. Simon has set foot in 48 U.S. states and is looking for an excuse to visit Maine and Alaska.