Savills. How Covid has impacted real estate investment during the first six months of 2020
Although there is a large disparity between global regions in the value invested in real estate in H1 2020 compared to the same period last year, the number of deals paints a different picture. During the first 170 days of 2020, deal numbers fell by 39%, 37% and 34% in the Americas, EMEA and Asia-Pacific respectively compared to the same period in 2019.
The difference between the size of deals that have taken place is particularly noticeable in EMEA where volumes by value appear to have held up relatively well, partly due to a significant increase in entity-level deals (the purchase of or merger between companies).
This was also the case globally with entity-level deals, up 191% over the same period, while portfolio deal volumes were down 13% and individual property deal volumes were down 40%. However, entity-level deals remain a small part of the market – accounting for 12% of deal volumes in H1 2020. The larger fall in smaller transactions reflects more cautious lenders and tightened lending criteria, which is less of a barrier for the big institutional players.