According to the latest data from Jones Lang LaSalle, global real estate transaction volumes grew 11% in the first half of 2013 compared to 2012, indicating improved investor confidence in commercial real estate. items
According to the firm, global direct commercial investment volumes reached $114 billion in the second quarter of 2013, up 4% from the previous quarter and 9% from the previous year. This is the fifth quarter in a row that worldwide commercial investment volumes have exceeded $100 billion.
"We expected that more capital would be dedicated to direct investment in core property assets over the next two to three years, and this is now materializing," Arthur de Haast, lead director of JLL's international capital group, said in a statement. "Globally, institutional, private equity, and high-net-worth individuals are now constantly bidding on prospects."
In the second quarter, transaction volumes in the Americas were $52 billion, up 39% from the previous quarter and adding to the region's $90 billion total for the first half.
With a year-over-year gain of 50%, Japan led the largest worldwide markets in the first half, followed by Germany (+43%), Australia (+10%), France (+6%), and the United Kingdom (+4%). China was the only market to show a 20 percent reduction in transaction volumes in the first half.
"The volatility in equities and bond markets over the previous quarter has added to the appeal of commercial property as an asset class," said David Green-Morgan, JLL's global capital markets research director. "Unless the cost of debt rises significantly, it is only likely to have a minor impact on transactional volumes for the rest of 2013," according to the firm. Commercial investment volumes are expected to remain between $450 billion and $500 billion for the last six months of the year, with total yearly volumes exceeding last year.