A report by Real Capital Analytics (RCA) has revealed that central Paris and Berlin were the most liquid commercial property markets during the first half of 2020 as Manhattan slipped down the ranks.
The RCA Capital Liquidity Scores showed that market liquidity fell in 111 of 155 global commercial real estate markets in the second quarter of the year and the number of markets recording lower quarter-on-quarter levels of liquidity is the worst since the global financial crisis.
In the Americas, 58 of 64 markets posted a lower liquidity score from the first to the second quarters of 2020, amid coronavirus lockdowns and economic interruption. In Europe, the Middle East and Africa, liquidity scores in 37 of 63 markets declined and in Asia Pacific, 16 of 28 markets dropped.
At the half-year stage, central Paris and Berlin were the world’s most liquid commercial property markets with Manhattan slipping to number three position, marking the first time since 2011 that the New York City borough has dropped out of the top two spots.
Tom Leahy, senior director, EMEA analytics at RCA, said: “The liquidity crunch was most pronounced in the Americas, where the greatest proportion of markets saw a drop in liquidity.
“In the US, 58 of 64 markets registered a lower liquidity score from the first to the second quarters of 2020, amid coronavirus lockdowns and economic interruption. In EMEA, liquidity scores in 37 of 63 markets declined and in Asia Pacific,16 of 28 markets dropped.”
The RCA Capital Liquidity Scores are calculated using a combination measures including transaction volume, count of unique buyers, global cross-border investment and institutional investment.