MSCI: European CRE investment tumbles 59% in first half 2023
European commercial real estate investment tumbled in the second quarter, registering the lowest volume of transactions since 2010 as rising interest rates, sluggish economic growth and structural changes in office use weighed on the market, according to the latest Europe Capital Trends report from MSCI Real Assets, a part of MSCI.
The volume of completed transactions fell 58 percent from a year earlier to €34.4 billion ($37.8 billion) in April through June. The generalized slump spared no real estate sector or major national market, reports MSCI Real Assets, leaving the €74.6 billion ($82.0 billion) of first half property sales 59 percent below where volumes stood in the same period one year earlier.
Tom Leahy, head of EMEA real assets research at MSCI, said, “In these extremely challenging market conditions, the office sector stands out as hardest hit from the consequences of higher interest rates and as occupiers shift to hybrid working. There is a