Commercial real estate continues to rank high up on the list of acquisitions for investors around the world, as preliminary global real estate investment volumes in the first quarter of 2013 reached $94 billion, according to Jones Lang LaSalle’s capital markets research from 60 countries.
The real estate investment volumes in the first quarter represented an 8 per cent increase over the same quarter in 2012.
Improving confidence in the global economic recovery and a continued demand for direct real estate exposure continue to push volumes higher with Germany, Japan, and the United States all finishing the quarter strong. Other highlights include:
All regions show increases over a year ago with the Americas, Europe, Middle East and Africa and Asia Pacific all between 7-8 per cent higher than one year ago.
Growth in the Americas was driven by increases in the two largest markets of the United States and Canada, of 20 per cent and 6 per cent growth respectively.
Volumes in the Asia Pacific region were driven higher by a 30 per cent increase in Japan year on year and stronger investment volumes in Singapore and Hong Kong. Overall the region is 8 per cent up on the first quarter of 2012.
Europe’s three biggest markets, the United Kingdom, France and Germany all contributed to the increase in transactional volumes, with Germany recording investment volumes almost 40 per cent higher than a year ago.
Jones Lang says it maintains its forecast for the year to be between $450 billion and $500 billion, with further growth in quarterly volumes this year.
Arthur de Haast, head of the International Capital Group at Jones Lang said, “Volumes of almost $100 billion in the first quarter of the year, in what is historically a quieter period, demonstrates the desire investors continue to have for direct real estate investments. Encouraged by a slowly improving global economic environment and rising property values, especially in core cities, the number of assets for sale continues to increase.”