Global Commercial Property Sales Rise by 47%
14 July 2011
Sales of global commercial property have increased 47% in the second quarter of the year compared to the second quarter of 2010. These sales are currently worth $101 billion and are predicted to reach at least $440 billion by the end of the year according to a report from Jones Lang LaSalle. Direct investment into the US, Canada and south and Central America accounted for an incredible $49 billion and is the highest for any region in the world. These sales are now at their highest level since late 2007, and are being helped by increased access to finance.
These exceptional sales in North America are partly due to the late recovery in this region, while investment in the Middle East, Asia and Europe accounted for $34 billion which is slightly higher than 2010. Investment in commercial property in Nordic countries and Russia was especially strong, while the property market in the UK showed slight cooling. Southern European countries showed significant slowing due to continuing debt problems, although the exception was Italy. Investment in commercial property in the Middle East remained relatively unchanged.
Commercial property investment in the Asia Pacific region suffered significantly due to the earthquake in Japan which is the region's largest commercial property market. Investment levels in the region were down by around 30% during the second quarter compared with the three months earlier, even though there have been strong growth in Australia and reasonable amounts of activity in China and Hong Kong.
Although predicted investment of 440 billion by the end of 2011 sound impressive, it is still significantly less than 2006 and 2007 when investments totalled $700 billion and $759 billion respectively, but at least it's a significant step in the right direction.