European Property Transaction Tracker | Europe Further Slowdown in 2Q

Research evidence excerpt

European Property Transaction Tracker | Europe Further Slowdown in 2Q

Foundation

July 20, 2026 04:00 AM GMT

Morgan Stanley & Co. International plc+MEuropean Property Transaction Tracker | Europe Ana Escalante

Equity Analyst

Further Slowdown in 2Q Ana.Escalante@morganstanley.comBart Gysens, CFA +44 20 7425-3271

Bart.Gysens@morganstanley.com +44 20 7425-5862

We analyse preliminary data for 2Q26 commercial transaction Paula Bayer

volumes. ResearchPaula.Bayer@morganstanley.comAssociate +44 20 7425-3053

Property

Key Takeaways Europe

Industry View Attractive

1H26 deal volumes down 7% vs 1H25 impacted by macro uncertainty, in our view.

UK Property: June IPD Update (15 Jul 2026)

Apartments and office outperformed, industrial volumes lagged.

Paris Office Property: No Clear Recovery Yet (7

Spain was the only region showing growth in deal volumes.

Jul 2026)

Property: Monthly Chartbook (1 Jul 2026)

Light 1H volumes overall, with activity slowing further in 2Q. European

investment volumes in 1H26 are down 7% vs. 1H25, but still up 1% vs. 1H24, Exhibit 1 : Deal volumes are down -7% in 1H

preliminary data from RCA show. Volumes are 17% below the long-term average for year on year

a first half. Momentum weakened during 2Q26, with quarterly volumes down 10% Europe transaction volumes

1H26 YoY 2Q26 YoY 2Q26 QoQ LTM vs previous 12m

year on year and 5% sequentially. We note 1H26 was marked by high uncertainty 34% 40%

23%

13% 11%and volatile markets since the outbreak of the Middle East conflict ( Exhibit 1 ). 5% 18% 14%19%

-5% -5%Spain and apartments best performing submarkets. Spain was the best -7%

-10% -13%-12% -8% -20% -5% -17% -17%

performing region with 1H26 volumes up 77% year on year, driven by residential, -22% -28%-36% -21%