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JLL MENA preliminary numbers show direct investment volumes reached US$ 114 billion in Q2; H1 2013 up 11 percent compared to first half of 2012.
Global commercial real estate markets continued to rally in 2013 with transaction volumes in H1 2013 up 11 percent on H1 2012, according to
JLL MENA capital markets research, which spans 60 countries and over 130 cities worldwide. Direct commercial real estate investment volumes in Q2 2013 reached US$ 114 billion globally, up four percent on Q2 2012 and up nine percent on Q1 2013.Continued strong growth in Q2 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,. Other highlights include:
Arthur de Haast, Lead Director,
International Capital Group at JLL MENA said:
“Over the past two to three years, we have predicted that more capital would be allocated to direct investment in core property assets; this is now materialising. Institutional, private equity and high net worth individual investors are now consistently bidding on opportunities around the world. In addition to this, investors are starting to diversify their portfolios, both in terms of risk and geography, looking for more value-added and secondary opportunities; a trend we expect to continue over the short to medium term.”
Global Capital Markets Research Director at JLL MENA said, “The volatility we have seen in equity and bond markets over the last quarter has further added to the attraction of commercial property as an asset class. So far, the rising cost of global real estate debt has had little effect on transaction volumes with most deals funded on modest loan to value ratios. Unless there is a substantial rise in the cost of debt, it is only likely to have a marginal impact on transactional volumes for the remainder of 2013.”
Fadi Moussalli, Head of the
International Capital Group in the Middle East said: “With inflows from relatively high oil prices continuing to provide a consistent source of capital the opportunities provided by commercial real estate are very attractive for investors from the Middle East at the moment. We continue to see capital move from the Middle East to Europe and the United States in particular. Whenever good, quality core assets are on the market investors are attracted by the consistent income flow and possibility of longer term capital growth."
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