Global commercial realty deals up 11% in H1
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Global commercial-real-estate markets have continued to rally this year with transaction volumes in the first half up 11 per cent, according to Jones Lang LaSalle.
Direct commercial-real-estate investment volumes in the second quarter reached US$114 billion (Bt3.57 trillion) globally, up 4 per cent on the same quarter last year and 9 per cent on the first quarter of this year, according to the firm’s capital-markets research spanning 60 countries and more than 130 cities worldwide.
Continued strong growth last quarter has kept global volumes above $100 billion for five straight quarters, evidencing increasing investor confidence in commercial real estate, despite volatility in equity and bond markets.
The Americas saw a 39-per-cent rise in transaction volumes in the second quarter from the first quarter, reaching $52 billion, up 11 per cent year on year. The first half totalled $90 billion, equating to a 9-per-cent increase over the same time last year.
Quarterly volumes in Mexico and Canada rose significantly to keep pace with the continued acceleration in the US market, which grew by 19 per cent year on year last quarter.
The Asia-Pacific and EMEA (Europe, Middle East and Africa) regions both recorded strong growth over the half-year with 11-per-cent and 12-per-cent year-on-year increases in volumes. Quarterly volumes in Asia and the Pacific remained flat both on quarter on quarter and year on year. Quarterly volumes in EMEA were flat year on year but down 13 per cent quarter on quarter after a buoyant start to the year.
The largest markets globally continued to see growth over the first half of the year with Japan up 50 per cent, Australia up 10 per cent, the United Kingdom up 4 per cent, Germany up 43 per cent and France up 6 per cent.
Only China saw transaction volumes fall 20 per cent in the first half, but a stronger performance is expected in the second half as deals already in progress complete.
Jones Lang LaSalle’s forecasts for the rest of this year remain at $450 billion to $500 billion. With global volumes up 11 per cent on this time last year and the second half of the year traditionally busier than the first, the global investment market is on track to surpass last year’s volumes, Arthur de Haast, lead director of the international capital group, said yesterday.
