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Over the 12 months ending with Q3 2023, investment reached €155m, far below Q1 2021’s low point and back to 2013 levels. This compares with the high in investment of €322bn reached in Q2 2022. Overall, between Q3 2022 and Q3 2023, investment decreased by 55%.

Investment still plummeting: all asset classes experienced a strong reduction.

A prolonged reset in the real estate market is continuing to keep the asset class in flux. After the challenges of the pandemic comes the surge in cost of debt that has precipitated a sharp and broad revaluation in the asset class.

While hybrid work models are here to stay, workplace plays a key role in attracting and retaining talent, both in terms of space quality and location. Demand is also high for energy-efficient and sustainable buildings.

The rapid acceleration in financing costs from mid-2022 destabilized pricing in the market, resulting in investment plummeting by Q4 as buyers and sellers pulled back.

Growth remains finely balanced against recession. Inflation barely slowed in February.