Awash with capital and liquid to boot
Liquidity in real estate investment relates to the ease with which investors can enter and exit a market, with liquid markets characterised by a high transactional turnover of assets. Research undertaken by DTZ, with liquidity ratios allowing for a like-for-like comparison of markets, shows that the United Kingdom was Europe’s most liquid commercial property market last year, with an 11 percent ratio of deals undertaken and retaining its premier position. Sweden was second and Finland third.
Over a 10-year period, the top liquidity position goes to Sweden. The other countries in the top five over the past 10 years are, in descending order, the United Kingdom, Luxembourg, Germany and Poland.
The past few years have seen a significant increase in liquidity across Europe, DTZ says. Europe’s overall liquidity ratio reached a record low of 2.1 percent in 2009, but activity has picked up considerably since and the ratio increased to 5.6 percent last year, a