European investors have sold more commercial real estate than they have bought in the US for the first time in seven years.

In its Inside Real Estate — Annual strategy outlook for 2020 study, Principal Real Estate Investors considers whether Europe’s net seller status may be a sign that investors believe they can gain better returns in their home markets as global gateway markets appear to be fully priced.

The manager has said that Europe also remains a global investor target, with transaction volumes in Europe on a 12-month trailing basis staying well above the post-2007 historical average of $250 billion (€225 billion). It has pointed to strong appetite for office and industrial properties, particularly in key global markets and in Eastern Europe, as the key drivers of capital flows and market liquidity.

Continued strength in tenant demand, which seems to be disconnected from any concerns in capital markets, has led to European prime vacancy dec