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

  • 22
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

Czech Republic is going to increase property tax next year
Property tax rates will increase to approximately 1.8 times their current value
The most popular locations for purchasing homes in Spain by foreigners in 2022 revealed
Foreign buyers purchased a record quantity of property in Spain in 2022, with sales and budgets...
France Obliged Owners to Register the Use of Residential Real Estate
The tax authorities need to know whether the property is a main residence or a holiday home.
Cyprus Residential Real Estate Market Overview
The permanent residence program stimulates demand.
Property prices in France are declining almost everywhere, except for tourist locations
High inflation and slump in sales are to blame.
Real Estate Sales and Prices in Estonia are Falling
In September, the volume of transactions with apartments in the country decreased by 21.6%.

Interesting to read