Building in a city

Episode 47 — Real Estate Realities in Europe: Expensive Money and the Power of Private Equity

April 17, 2023
After a long period of heightened dealmaking, activity may be down, but this moment could present opportunities for cash buyers and opportunistic investors in multi-family, hospitality, logistics, and certain office markets.

As interest rates soar to the highest rates in a decade, European real estate buyers and sellers are struggling to makes economic deals — transaction volumes in Europe fell by 44% in the last year. Despite a comparatively down year in fundraising for real estate funds, some €80 billion has already been raised for real estate acquisitions, in contrast to the situation in the 2008 global financial crisis where there was a lack of dry powder. And investors, including sovereign wealth funds, that will not need financing, may be in a strong position to acquire real estate assets at favorable prices.

In this episode of Connected With Latham¸ New York partner Michelle Kelban, Global Co-Chair of Latham’s Real Estate Practice, speaks with Private Equity Real Estate partners Carsten Loll from Latham’s German offices and Rafael Molina from the Madrid office about the outlook in their respective markets and the European market generally.

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