2012-13 Global Property Investment Volume
Cushman & Wakefield (global real estate solutions) in its latest International Investment Atlas proves that global property investment in 2012 was increasing modestly at 6 % and the volume was USD 929 billion. The unfavourable influencing factors are known, the market has picked-up slightly in the first months of 2013 but uncertainty remains
In 2012, China and the USA were two key engines of the strong finish – the former was benefitting from a record high in land right sales and the latter seeing a rush of activity to beat year-end capital gains tax hikes, but also other markets saw a final quarter rally, notably Spain, Poland, Norway, Switzerland, Indonesia, Thailand, India and Australia. On the other hand, emerging markets in Europe, the Middle East, Africa and South America were all down. As countries, the USA and Mexico were the biggest gainers in the Americas, Malaysia, Vietnam, Australia and New Zealand enjoyed the strongest growth rates in Asia, while for Europe Finland, Norway, Switzerland and Ireland saw the highest growth. More modest growth rates were registered in big markets like China, Germany and Hong Kong and were clearly instrumental in delivering growth at the global level.
The Americas share of global real estate trading rose to 32 % (28 %), while EMEA slipped to 21 % (24 %). Asia remained the largest global trading block, accounting for 47 % (48 %) of market activity. Europe is the biggest target market, attracting 51 % (45 %) of capital and Asia speaks for 32 % of cross border investments and the Americas 18 % (20 %).
As for 2013 North America will be the favoured global destination for real estate investment and an increase of 15 to 20 % is the forecast for investment activity. Asia Pacific investment activity is scheduled to rise 15 to 20 % also and the global property investment volumes will exceed one trillion USD.