Commercial property deals across EMEA could reach €100bn (£91bn) in Q4 if “smoother waters prevail”, according to Colliers International.
This could take investment volumes for the whole year to circa €270bn, which would mark a 14% dip in activity compared to 2019 figures, the agent said.
The prediction follows an improvement in “sentiment and liquidity” in the EMEA market, with larger transactions happening throughout the area, said Richard Divall, head of cross-border capital markets EMEA at Colliers International.
He added: “As we enter the final quarter of the year, we are expecting to see a spike in volumes, as investors look to deploy some of their ‘dry powder’ and sellers become more confident with the depth of buyers and liquidity in the markets.”
The agent’s research also showed that 95% of investors expected the market to recover in 12 months’ time.
Markets that have been particularly active include Germany, Switzerland and France. Meanwhile, London and Paris could see a price correction.
Office investment volumes have seen price levels adjusted due to uncertainty over the future role of the workplace, the agent said. Values for core-plus and value-add offices have declined by up to 20% on deals.
Divall added: “Of course, the market is still fragile, and external factors could send the market back into turbulence, including the US election in November, and a second wave of the pandemic in Europe.
“However, if this can be avoided and smooth waters prevail, we could see investment volumes reach over €100bn in Q4, doubling those of Q3 and Q2.”