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Investment in Global Commercial Real Estate Market Sees Strong Growth
Brief:Investment in global commercial real estate markets continues to rally, with strong growth in first half of 2013, according to the latest report from Jones Lang LaSalle.
Investment in global commercial real estate markets continues to rally, with strong growth in first half of 2013, according to the latest report from Jones Lang LaSalle. Preliminary numbers covering 60 countries and over 130 cities show direct investment volumes reached US$114 billion in the second quarter of 2013 up 4% on the second quarter of 2012 and up 9% on the first three months of 2013.
 
Continued strong growth in the second quarter of 2013 has kept global volumes above US$100 billion for five consecutive quarters, evidencing increasing investor confidence in commercial real estate, despite volatility in equity and bond markets.
 
The report also shows that the Americas saw a 39% rise in transaction volumes in the second quarter compared to the first quarter of 2013, reaching US$52 billion and up 11% year on year.
 
In the first half of the year it totalled US$90 billion, equating to a 9% 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% year on year in the second quarter of 2013.
 
 
Asia Pacific and EMEA both recorded strong growth over the half year with 11% and 12% year on year increases in volumes respectively. Quarterly volumes in Asia Pacific remained flat both quarter on quarter and year on year, quarterly volumes in EMEA were flat year on year but down 13% quarter on quarter following a buoyant start to 2013.
 
The largest markets globally continued to see growth over the first half of the year with Japan up 50%,Australia up 10%, the UK up 4%, Germany up 43% and France up 6%, all recording half year increases compared to the first half of 2012. 
 
Jones Lang LaSalle’s forecasts for the remainder of 2013 remain at between US$450 to US$500 billion. With global volumes up 11% 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.
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