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Liquidity has all but dried up in the central London investment market. It feels like it might never come back. But it will.
Whether it is V-shaped or U-shaped, when recovery does arrive, London will be among the first cities where real estate investment recovers, according to a new analysis from Real Capital Analytics.
RCA examined how the real estate investment markets of major European and global cities performed in the wake of the last financial crisis. It found that the most liquid markets, defined as having the highest number of transactions and of buyers and sellers, were the first to see pricing return to pre-crisis levels.
For example, central London was the most liquid market before and during the 2008 crash, saw the shallowest decline in liquidity, about 10%, and was the first major European city to see liquidity levels bounce back. Pricing levels closely track liquidity.Liquidity reached a trough in…
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