European office transactions fell to their lowest level since 2009, with values dropping by a third to €8.8bn in Q3 2026. Soaring bond yields and a new cycle of central bank rate hikes have choked off recovery hopes, according to MSCI data. Tom Leahy of MSCI described the period as one of the slowest on record for European property.
Mark Swetman, CEO of LS Estates, noted widespread delays and cost inflation, stating that no projects were finishing on time. Investors remain risk-off, concerned about inflation and contractor insolvencies. Deal volumes fell across all commercial property sectors except retirement housing, reaching €43bn, the lowest since 2023.
The UK showed relative resilience, while France and Germany saw volumes halve. French borrowing costs surged amid political uncertainty and protests. Leahy warned that property owners may soon adjust pricing expectations, though the market still faces significant headwinds.
Source: Financial Times Companies · Summarized by HeadlinesBriefing