Global Real Estate Investment Surges In 2013

By Editorial 14 March, 2014

The global property investment market delivered USD1.18 trillion of transactions in 2013 – a 22.6 percent increase on 2012 and the highest total since 2007, according to the latest edition of International Investment Atlas, published on March 12, 2014 by commercial real estate services firm Cushman and Wakefield.

Global real estate investment turned a corner in 2013 with market activity and values picking-up as recessions ended, business sentiment rallied and increased liquidity affected most global markets. Transactions were worth USD1.18 trillion in 2013, and the strong annual performance helped to push prime yields back down to pre-crisis levels, the report said.

Looking ahead, Cushman and Wakefield forecast a 13 percent increase in investment globally, to USD1.33 trillion, in 2014, with the US and Western Europe predicted to drive the uplift in activity.

Foreign property investment outpaced domestic property investment. Foreign investors' activity rose 24.3 percent over the year, compared with domestic demand growth of 22.3 percent. A significant shift in the nature of cross-border players is taking place, the report said, with global as opposed to regional investors coming to the fore. Regional investment rose 13 percent while global investment was up 36 percent, driven particularly by investment into Europe, the Middle East, and Africa (EMEA).

The main source of international capital is the Asia Pacific region, accounting for nearly 40 percent of all non-domestic spending. The majority of this is invested within the Asian region however. Looking at global rather than regional spending, it is North American investors who very much drove the market, investing USD43.8bn – 43 percent of the total spent outside an investor's home region. However, the fastest growing source of global capital is no longer North America – Asian investors increased their spending outside their region by 88 percent, and Middle Eastern investors beat that, increasing spending by 96 percent.

Tags: Western Europe | Asia Pacific | Investment | Business | Real-estate Investment | Accounting | Real-estate | Services | Middle East And Africa | Expats | Investment | Europe | Invest | North America | Africa | Middle East | Investment |


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