Global commercial real estate markets continued to rally in 2013 with transaction volumes in the first half of 2013 up 11 percent over 2012, according to Jones Lang LaSalle Capital Markets research. Direct commercial real estate investment volumes in Q2 of 2013 reached $114 billion globallyup 4 percent from Q2 of 2012 and up nine percent from Q1 of 2013.
Continued strong growth in Q2 of this year has kept global volumes above $100 billion for five consecutive quarters, which is shown by increasing investor confidence in commercial real estate. Global transactions volumes are up 11 percent over this time last year, and with the second half of the year traditionally busier than the first, the global investment market is on track to surpass last year’s volumes. Jones Lang LaSalle forecasts transaction volume will reach between $450-500 billion for 2013.
The Americas saw a 39 percent rise in transaction volumes in Q2 compared to Q1 this year⎯⎯ultimately reaching $52 billion. H1 totaled $90 billion⎯⎯equating to a 9 percent increase over the same time last year. Quarterly volumes in Mexico and Canada rose significantly to keep pace with the continued acceleration in the U.S. market, which grew by 19 percent year on year in the second quarter of 2013.
Asia Pacific and EMEA both recorded strong growth over the half-year with 11 percent and 12 percent year-on-year increases in volumes respectively. Quarterly volumes in Asia Pacific remained stable both quarter on quarter and year on year.
The largest markets globally continuing to see growth over the first half of the year were Japan, Australia, the UK, Germany, and France⎯⎯all recording half-year increases compared to last year. Only China saw transaction volumes fall in the first half, although a stronger performance is expected in the second half of the year.
“Over the past two to three years, we have predicted that more capital would be allocated to direct investment in core property assets; this is now materializing,” says Arthur de Haast, lead director of the International Capital Group at Jones Lang LaSalle. “Institutional, private equity and high net worth individual investors are now consistently bidding on opportunities around the world. In addition to this, investors are starting to diversify their portfolios, both in terms of risk and geography, looking for more value-added and secondary opportunities; a trend we expect to continue over the short to medium term.”
