Bisnow: The Weird Psychology Of Why You Do So Many Deals In December

With 2021 just around the corner, the real estate deals are closing around the country. What is the psychology behind the spike in December deals? Here is an interesting take from Bisnow.

The year-end deal surge in real estate is no myth: Over the past five years in Europe, 18% of deals by volume and 16% by count have happened in December, according to Real Capital Analytics. That is more than double the next highest month, which is June. 

“People’s budgets tend to run to a December year-end,” Income Analytics Chief Executive Matthew Richardson said. “You start off the year with a defined strategy, and you wait to invest in the best possible deal. You are optimistic. But as the year comes to a close, you look at the deals and they are what they are, and you just have to place clients’ money.”

Some of the deal spike likely comes from solid deals that had been dragging out from earlier in the year but had extra pressure applied to finalize before the budget closes. But in some cases, it becomes not about getting the best deal but a deal of any kind. 

Check out full article here.

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