CMS’ analysis of the market in 2022 revealed the following key trends:
Transaction levels in the European real estate investment market fluctuated widely during 2022. Overall, total investment across Europe fell by around 14% compared to the previous year, coming in at some EUR 248bn. This decline was mainly due to developments in the fourth quarter of 2022, when investments plummeted by 57% compared to 2021, dropping to approximately EUR 47bn.
Demand for office properties rose again. From a low of 19% in 2021, the segment’s share rose to 24%, making office real estate the most sought-after asset class in Europe on par with residential real estate.
Investment in residential properties accounted for a 24% share of the market.
The main reason for the popularity of residential properties is the stable income that they generate, which is particularly attractive to investors in uncertain times.
International investors accounted for 54% of real estate investments, while national buyers accounted for 46%.
A strong need for security persisted on the part of sellers. The proportion of transactions in which steps were taken to ensure the buyer met its financial obligations remained at the record level of 70% seen in the previous year (2021).
Buyers were frequently able to negotiate favourable terms with regard to contractual provisions on limitation periods. A notable increase in seller-friendly limits on liability was reported.
The full study is available at:
https: //cms.law/en/bel/publication/cms-european-real-estate-deal-point-study-2023
Author of the article:
Soňa Hanková, CMS Slovakia law firm (source: red)
Soňa Hanková
Partner, Attorney-at-law
CMS Slovakia
sona.hankova@cms-rrh.com
This article has been brought to you by CMS Slovakia.
