a
Print
version

European commercial real estate investments fell to an 11-year low

  • 35
Investors are concerned about high interest rates and economic uncertainty.

What happened? Investment in European commercial real estate fell to its lowest level in 11 years in the first quarter of 2023, MSCI Real Assets said. This is due to the fact that investors, spooked by higher interest rates and the economic outlook, have suspended plans to acquire assets.
Example. The number of offices sold - Europe's largest real estate sector - fell to its lowest level on record, and the volume of such transactions fell to a 13-year low of €10.8 billion.
Regions. The UK has preserved its top spot as Europe's largest commercial real estate market. However, Paris has overtaken London to become the region's most active investment destination, with the top three European real estate deals in the first quarter taking place in the French capital.
Context. A recent JP Morgan investor survey named commercial real estate as the most likely cause of the next financial crisis. And according to International Monetary Fund estimates, some of the largest US banks have singled out commercial real estate as an area of concern.
Quote. "While there are obvious concerns about the availability of real estate finance following the banking turmoil in March, we’ve yet to see a widespread increase in distressed sales," said Tom Leahy, head of EMEA real assets research at MSCI.

Sourse: Reuters

Photo by Babak Habibi on Unsplash

Quoting conditions of Prian.info materials

Share the link:
Tags: Market Analysis, Investment, Real Estate, Commercial real estate

Read also

Housing prices in Spain are on the rise
Each region reported an increase of the property prices in the secondary market.
Cyprus property market remains buoyant despite challenges
2023 promises to have been the most productive year on the market in the last 15 years.
There is a huge gap between the asking rental prices by landlords and the actual rental rates in Athens.
In some districts the gap can escalate to as much as 35%
Property prices in France are declining almost everywhere, except for tourist locations
High inflation and slump in sales are to blame.
Housing prices in the EU have increased by almost 50% in 12 years
Purchase prices are rising faster than rental rates.
The Bulgarian property market has hit the brakes
Large cities and popular resorts of the country have reported a decrease in the number of...

Interesting to read