Commercial Real Estate Prices in Europe After COVID-19

Martin Hoesli and Richard Malle
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Martin Hoesli: University of Geneva; University of Aberdeen; Swiss Finance Institute;
Richard Malle: Conservatoire National des Arts et Métiers (CNAM); BNP Paribas - Real Estate

No 23-73, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We analyze the behavior of commercial real estate prices after the COVID-19 pandemic, emphasizing differences across property types. For that purpose, we use national and city level direct real estate data for the 10 largest countries in terms of market capitalization, as well as listed real estate data. We find that the recent rise in interest rates and geopolitical instability have affected prices differently across sectors. Industrial properties benefited from the pandemic although prices declined significantly in 2022. Residential properties continued their upward price trend and have been the best-performing property type during the last two decades. Retail real estate continued its downward price trajectory. Thus far, office markets do not appear to be significantly affected by structural changes in the sector. Finally, data for listed real estate markets in Europe suggest that markets bottomed out in early 2023.

Keywords: Commercial real estate prices; Europe; COVID-19; Industrial; Residential (search for similar items in EconPapers)
JEL-codes: G12 G23 R33 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2023-08
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2373

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