Monday, October 17, 2011

Property Investment Rising Despite Global Economy

Propertywire reports that global investment in real estate is holding up well despite the economic growth concerns with transaction volumes up 36% in the third quarter of 2011 compared with the same period in 2010.

Volumes totalled US$99 billion according to the latest figures from Jones Lang LaSalle. In the first nine months of 2011, investment activity increased by 43% with total transaction volumes amounting to US$297 billion, compared to US$208 billion in the same period last year.

Despite heightened economic and sovereign debt concerns, European transaction volumes have held up well, with a total of $US41 billion in the third quarter, an increase of 14% on the last quarter and a 38% rise on the third quarter 2010.

The UK, the largest market in Europe, saw a marked improvement in the third quarter 2011, in part due to deal completions delayed from the second quarter. Germany, France, Scandinavia, Poland and Russia all continue to attract strong investor interest, with safe haven status and relative GDP growth considerations prevalent.

In Asia Pacific, transaction volumes amounted to $US20 billion in the third quarter. This represents an 8% rise on the previous quarter and a 3% increase on the third quarter 2010. The deal volume for China’s direct commercial property investments rose to approximately $US2.8 billion, up 13% on last year. Japan the largest Asian market, saw volumes rise to over $US4.7 billion, in line with the same quarter in 2010, as the markets recovered following the tsunami and earthquake earlier in the year.

The Americas saw a slowdown in the third quarter with volumes down 22% compared with what was a very strong second quarter. Investment reached $US38 billion, up 60% on the same period last year.

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