In the first quarter of 2020, the total value of investments in commercial real estate in Europe reached €85.5 billion. This means an increase of as much as 52 percent y/y. The increases were visible in virtually all markets, including Poland, where the value of investments amounted to €1.7 billion and was 109 percent higher on an annual basis, according to the latest CBRE report.

“Record results of the first quarter show how big was the appetite of global real estate investors. Of course, since March we have been observing a clear change in mood due to the outbreak of the coronavirus epidemic and its impact on people, companies and the economy throughout Europe. The effects of this phenomenon will only be visible in the following quarters. The real estate market has entered a period of uncertainty associated with coronavirus in a very good form, which in the long term allows us to remain optimistic,” Przemysław Felicki, head of the investment department, CBRE, said.

Significant increases in the volume of investments were noted, among others in Great Britain, where the value of transactions amounted to as much as €17.2 billion, which means 33 percent more compared to the same period last year. This increase in the UK is the result of, among others, greater political stability after the December parliamentary election results. Good results were also recorded in Germany, France and Spain – an increase of 97 percent, 38 percent and 54 percent respectively.  Ireland recorded a 110 percent increase with a volume of €1.3 billion.

The good results in the first quarter of 2020 in Europe were partly caused by delays in transactions concluded in the previous year. Many investments were initiated in the second half of 2019, but they were completed only in the first months of this year. However, even after adjusting the result for large transactions, the result in the first quarter of 2020 was still 15 percent higher than in the same period last year.

(WBJ)