The commercial investment market recorded a transaction volume of more than €8.3bn in the first quarter of the year. This represents a decrease of around 14% compared to the corresponding period last year.
While retail property witnessed a particularly strong decline in the transaction volume (-40% compared with Q1 15), healthcare property stood out with an increase in volume of more than 50%.
The general decline in transaction volumes is not a consequence of falling demand in our estimation but rather a result of scarce supply. This, in turn, is a consequence of the further reduction in the ECB’s main refinancing rate, which makes it even more difficult for investors to reinvest sales proceeds profitably. However, since there are numerous individual properties and portfolios on the market or about to be brought to the market, we expect higher transaction volumes during the coming quarters.
Source : Savills