European real estate investment crash to be short-lived in 2020

European real estate investment activity is set to plummet by 50 percent before rebounding sharply within the next 12 months, according to Savills, who predicts that neither the speed or the depth of the crash will be as bad as the global financial crisis, when volumes across the continent plunged by 72 percent between 2007–2009.

Eri Mitsostergiou, director, Savills European research, said, “We believe that short-term headwinds are likely to have a negative impact on deal flows over the next three to six months. This time however, high liquidity, low interest rates, constrained development pipelines and a better capitalized banking sector should contribute to a faster recovery of investor sentiment.”

Savills recorded that more than €70.6 billion ($tk billion) worth of real estate transacted across Europe in the first quarter of the year, which is 25 percent above the five-year average, with 61 percent of this activity attributed to cross-border capital. Despit