They fell 58% year-on-year in the second quarter as rising interest rates hit property markets across the continent, Bloomberg reported. Rapid changes in lending rates create a disconnect between buyers and sellers, freezing investment markets. Commercial real estate is typically priced based on transaction data, which means prices may be updated more slowly.
In a separate report, consultancy Savills said business property investment in Europe will rebound next year as the Old Continent’s economy improves. Total deal volume in 2024 is forecast to be €220 billion, up 35% from the 2023 forecast of €163 billion.