European real estate sector sales plunge

Europe’s commercial real estate investments decreased to $11.94 billion, the lowest in 11 years, MSCI Real Assets announced on Thursday.

The UK kept its top spot as Europe’s largest commercial real estate market, while Paris dethroned London and became the region’s most active investment destination, with the three largest European property deals of the first quarter all taking place in the French capital.

“While there are obvious concerns about the availability of real estate finance following the banking turmoil in March, we’ve yet to see a widespread increase in distressed sales,” said Tom Leahy, MSCI’s head of real assets research for Europe, Middle East and Africa.

Asset manager, Blackstone, saw its first quarter earnings slump, as the commercial real estate slowdown hindered some asset sales.