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Commercial Real Estate Prices in Europe After COVID-19

Author

Listed:
  • Martin Hoesli

    (University of Geneva; University of Aberdeen; Swiss Finance Institute;)

  • Richard Malle

    (Conservatoire National des Arts et Métiers (CNAM); BNP Paribas - Real Estate)

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.

Suggested Citation

  • Martin Hoesli & Richard Malle, 2023. "Commercial Real Estate Prices in Europe After COVID-19," Swiss Finance Institute Research Paper Series 23-73, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp2373
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    File URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4558658
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    Cited by:

    1. Fetais, Alanoud Hamad & Aysan, Ahmet Faruk & Nagayev, Ruslan, 2024. "Navigating the complexities of GCC real state markets: An analysis of interlinkages amidst shocks and oil effects," Journal of Multinational Financial Management, Elsevier, vol. 74(C).

    More about this item

    Keywords

    Commercial real estate prices; Europe; COVID-19; Industrial; Residential;
    All these keywords.

    JEL classification:

    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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