According to Jones Lang LaSalle, global commercial real estate investment volumes hit $549 billion in 2013, up 18% from the previous year. plot for sale
Thanks to improved global economic conditions and increased liquidity, investment volumes in the fourth quarter alone totaled $183 billion, up 31% from the previous quarter, according to the company. The figure for the fourth quarter was 13% higher than the same time the previous year.
According to JLL, the improvement in global property markets is due to more positive economic forecasts and consumer trust.
"The willingness of investors to keep hard income generating properties, alongside and in some cases in preference to more liquid investment opportunities, is definitely benefiting real estate," Arthur de Haast, lead director, International Capital Group at JLL, said in the study. "Experienced investors' willingness to look at opportunities that need additional asset management or more innovative solutions has helped drive 2013 volumes beyond our initial expectations."
With 26% of global investment volume, the Asia Pacific region led the way, with volumes reaching $124 billion in 2007. The Japanese market, which saw a 63 percent increase in terms of dollars, led the region's investment growth. In 2013, China's investment increased by 66 percent, while Australia's increased by 30 percent.
In 2013, investment volumes in the Americas increased by 18%, hitting $240 billion. Both the United States and Canada saw a 20 percent rise, while Latin America's Brazil market had a particularly slow year.
Investment volumes in Europe totaled $184 billion in 2013, up 14% from the previous year, with European markets posting some of their best performance since 2007. The United Kingdom and Germany rose by 19% and 17%, respectively.
"While total global capital flows have remained far below peak levels with little growth in recent years, real estate continues to see a rise in capital flows between countries and regions," said David Green-Morgan, Global Capital Markets Research Director at JLL.
"Investors are increasingly searching for opportunities outside of their home markets, and this trend is unlikely to change in the short to medium term."
JLL predicts a 14% rise in global commercial property investment volumes in 2014, surpassing $600 billion for the first time at $625 billion. The Americas are expected to see the most growth, at 20%, due to increased economic growth, less political distractions, and improved liquidity.
"Europe is predicted to have an unusually good first quarter of 2014," according to the survey, "supporting a 10% year-on-year rise in 2014." "Given the improving global economic recovery and strong demand from domestic investors, Asia Pacific markets are expected to retain their momentum into 2014, supporting an overall forecast of 10% growth in volumes in the region."