European investment volumes witnessed a strong bounce back in Q4 2020, with key markets witnessing improving liquidity and the return of global capital sources. Investment into Direct European real estate reached €252 billion for the full year, a 25% fall on 2019, but the figure masks a range of different performances across countries.
In 2021, we expect there to be significant interest in the alternative sectors including life sciences, senior living and assets backed by technology sub-sectors. Investors have adopted a cautious but confident approach in Q1 2021, despite lockdowns limiting cross border transactions. We expect cross border investment to rise this year as the vaccine is rolled out, allowing a relaxation of travel bans and quarantine measures.