LONDON (Reuters) – European commercial real estate investment fell to its lowest in 11 years in the first quarter of 2023, MSCI Real Assets said on Thursday, as investors spooked by higher interest rates and the economic outlook put acquisition plans on ice.
The number of offices sold – Europe’s largest real estate sector – fell to its lowest on record, while the volume of transactions slumped to a 13-year low of 10.8 billion euros ($11.94 billion).
The UK kept its top spot as Europe’s largest commercial real estate market, but Paris overtook London to become the region’s most active investment destination, with the three largest European property deals of the first quarter all taking place in the French capital.
($1 = 0.9048 euros)
(Reporting by Elizabeth Howcroft, editing by Sinead Cruise)
