EMEA Capital Markets I Q2 2023

Muted‘ is the word that springs to mind when describing market conditions in Q2. In many ways it was a continuation of the first quarter, with interest rate hikes hitting confidence, impeding the process of price discovery and feeding the gap between buyer and seller expectations. Nonetheless, some major deals closed over the period, as equity-rich investors continued to seek and find strategic assets.

Large portfolio and asset trades remained thin on the ground, with transactions focused on a sweet spot of between EUR 20 – EUR 60 million. This buying strategy sees value-add assets most in favor as investors hold onto core assets as pricing is forced them out by the continued interest rate expansion.

Industrial & logistics (I&L) was the stand out performer in Q2. It has re-priced faster and harder than any other sector, with values partially protected by strong rental growth.