Global real estate transaction volumes increased 11 percent during the first half of 2013 compared to 2012, demonstrating increased investor confidence in commercial real estate, according to the latest data from Jones Lang LaSalle.
Direct commercial investment volumes reached $114 billion globally during the second quarter of 2013, a four percent increase from last year and up nine percent from the previous quarter, the firm reports. This is the fifth consecutive quarter with more than $100 billion in global commercial investment volumes.
Arthur de Haast
"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," Arthur de Haast, lead director of JLL's international capital group, said in a release. "Institutional, private equity and high net worth individual investors are now consistently bidding on opportunities around the world."
Transaction volumes in the Americas reached $52 billion during the second quarter, a 39 percent increase compared to the previous quarter, adding to the $90 billion total for the first half in the region.
Japan led the largest global markets in year-over-year increases during the first half with 50 percent, followed by Germany (+43 percent), Australia (+10 percent), France (+6 percent) and the UK (+4 percent). China was the only market to report a drop in transaction volumes during the first half, decreasing 20 percent.
"The volatility we have seen in equity and bond markets over the last quarter has further added to the attraction of commercial property as an asset class," David Green-Morgan, global capital markets research director for JLL said. "Unless there is a substantial rise in the cost of debt, it is only likely to have a marginal impact on transactional volumes for the remainder of 2013."
Commercial investment volumes are expected to remain between $450 billion to $500 billion for the last six months of the year, with total yearly volumes surpassing last year, according to the firm.