In view of the continued high level of transactions last month (Table 1) and the very full deal pipeline, we are raising our projected annual transaction volume to €60bn (Graph 1). Should this be achieved, then 2017 will be a new record year.
The portfolio segment is currently witnessing a particularly high level of activity. Portfolios accounted for 38% of the transaction volume (12-month rolling) in May, which represents the highest proportion for five years. Consequently, the average transaction volume is also increasing (Graph 3).
We are increasingly seeing deals with no structured bidding process both in the portfolio segment and beyond. Some investors are prepared to pay a higher price from the outset in order to avoid a bidding competition.
Source : Savills