According to JLL, greater capital allocation levels into direct real estate helped propel global real estate investment volumes to $165 billion in Q3 2014, up 4% from Q2 2014 and 13% from Q3 2013. This has increased global 2014 year-to-date (YTD) volumes to $463 billion, up 23% from $378 billion in the first three quarters of 2013. properties
"Global commercial property markets continue to witness heightened investor activity, with both prime and secondary prospects drawing significant competition and interest from clients," said Arthur de Haast, JLL's Lead Director International Capital Group. "Given the amount of stock still sitting on the sidelines waiting to be deployed, overall volumes this year are on track to approach $700 billion, a level last seen in 2006."
JLL's Global Capital Markets Research Director, David Green-Morgan, stated, "The recovery in occupier demand in 2014 continues to provide a positive tailwind for investment markets. Because the development pipeline has been below average in recent years, rents have risen dramatically in areas where demand is high. This gives investors confidence in the performance of their assets, encouraging them to invest in new prospects."
The Americas are a continent that spans the globe.
The US, Brazil, and Mexico all had strong increase in Q3 2014, with total volumes of $78 billion, up 16 percent from Q2 and 23 percent from Q3 2014. Volumes for the first half of 2014 totaled $207 billion, up 35% year over year.
Europe
Volumes in Europe in the third quarter of 2014 totaled $56 billion, down 5% from the second quarter but still up 7% from the third quarter of 2013. Volumes for the first half of 2014 are up 26% in dollars and 22% in euros, bringing the total to $170 billion. Increased activity levels in more peripheral areas such as Central and Eastern Europe (up 35%), Benelux (up 56%), the Nordics (up 20%), and Southern Europe (up 20%) are supporting strong growth in core markets such as France, Germany, and the United Kingdom (up 72 percent ).
Asia Pacific investment markets remained constant in Q3 2014, with $31 billion in volume. Despite the fact that this sum is down 3% from Q2 2014, it is up 3% from Q3 2013, implying that the gap between 2013 and 2014 levels has reduced, with 2013 YTD volumes of $86 billion only 4% behind last year. While the transactional markets in Australia and Japan have expanded, YTD 2014 volumes in China are down 30% from 2013, however this is only temporary as global investor interest for Chinese real estate remains strong.