Preliminary 2021 survey results for the leasing sector
Leaseurope, the trade association representing the European leasing and automotive rental industries, has released the results of its preliminary survey of the European leasing market for 2021. They show that, after a challenging 2020, the leasing market saw a positive year. In 2021, total new business volumes grew by 13.3% compared to 2020, while the outstanding portfolio expanded at 3.6% among the member associations reporting. New business volumes for vehicles rose by 15.7% in 2021. Albeit at a slower rate, equipment leasing was also up by 6.3%. Among the main asset categories, real estate leasing underwent the highest increase of 24.0% despite a downturn persisting in some national markets. All national leasing markets across Europe saw relatively stable or positive results in total new leasing volumes, with about three quarters of countries recording double-digit growth in 2020 compared to the previous year. The greatest increase in new business was observed in the Baltic countries and Spain, showing a significant recovery from 2020, followed by other countries, such as Poland, Slovenia and Sweden. Ukraine, Turkey and Greece demonstrated continued firm growth despite the COVID-19 pandemic related challenges.
“Upbeat preliminary results for 2021 point to a strong recovery of leasing business, rebounding from the exceptionally low base of comparison reached in 2020 due to the severe impact of the COVID-19 pandemic. Despite overall progress on the back of robust European economic activity last year, our industry remained somewhat below its pre-pandemic level in new leasing volumes, as recovery took some time in many national markets in key sectors. The adverse effect of pandemic developments, including continued supply chain disruptions, as well as rising energy costs putting upward pressure on prices, clearly weighed on the pace of such a rebound. Further improvement in leasing volumes in 2022 should be supported by returning demand for business investment in the EU, and in particular a growing need to finance the green and digital transition.”