Germany unseats UK as real estate könig of Europe

British deal volume fell 43 percent in year of Brexit

TRD New York /
Feb.February 03, 2017 09:34 AM

Brandenburg Gate in Berlin (Credit: Thomas Wolf via Wikipedia)

It was a good run, but after more than decade of market dominance the British are no longer the real estate royals of Europe.

According to Real Capital Analytics, nearly $63 billion in commercial property was traded in Germany last year, compared to just $57 billion in the United Kingdom.

June’s Brexit vote, in which the people of the U.K. decided by plebiscite the leave the European Union, shocked a global investment community already wary of the U.K.’s high property prices.

But despite its new position at forefront of European dealmaking, Germany’s transaction volume dropped 19 percent in 2016, just slightly below the 21 percent European average. The U.K.’s volume, meanwhile, fell a ghastly 43 percent.

The swing in outlook has hit the London luxury market particularly hard, as prices recently fell to 2012 levels, according to the research firm Molior London. Commenting on that drop in an interview with Bloomberg last month, Related Co.’s TRData LogoTINY CEO Jeff Blau said “Uncertainty is bad for business, and Brexit has created uncertainty.”

According to RCA, $489 billion in commercial property traded hands in the U.S. last year, an 11 percent fall.

Back in New York, real estate stakeholders have largely speculated that the U.K.’s loss will be the Big Apple’s gain. A Cushman & Wakefield report last year noted that New York City “may feel its influence grow as its chief rival is distracted.”  [MarketWatch]Will Parker

Related Articles

Stephen Levin, REBNY's Jim Whelan and Brad Lander (Credit: Getty Images)

The bill that won’t die: Will commercial rent control finally pass?

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

From left: Pavel Fuks, Michael Cohen, Felix Sater, and Donald Trump (Credit: Getty Images and Wikipedia)

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties