Worldwide real estate investment volumes up in 2012 but Asia-Pacific records downturn


An exceptional Q4 pushed Global Commercial Real Estate Investment Volumes to US$436 billion in 2012 surpassing 2011 totals, according to Jones Lang LaSalle preliminary numbers.

Preliminary global volumes beat forecasts to end 2012 at US$436 billion, a slight increase over 2011 total of US$435 billion and a 36 percent increase over 2010, Jones Lang LaSalle adds.

Jones Lang LaSalle attributed the strong quarter to a yearend rush of United States investors seeking to allocate funds to avoid capital gains taxes from the government’s fiscal cliff crisis. U.S. volume rose 51 percent q-to-q. Mexico, Canada, France, Germany and the Nordic countries also finished the year strong

“The surge in the final quarter of the year demonstrates once again that real estate markets are well through the recovery phase of the cycle and are now supporting year-on-year increases in transactional volumes,” Arthur de Haast, head of the International Capital Group at Jones Lang LaSalle said. “Based on this evidence we anticipate that 2013 will be another one of growth with global volumes set to be between US$450-500 billion.”

Asia-Pacific had a consistent end to the year, but full-year volumes are down slightly in 2012 at $92.5 billion compared to $98 billion in 2011 with slower economic growth in China effecting volumes in the second biggest market.