In 2012, $436 billion was invested globally in commercial real estate.

Global real estate investment volumes rallied in 4Q 2012, according to Jones Lang LaSalle capital markets research from 60 countries, with US$141 billion transacted, bringing the year's cumulative preliminary value to $436 billion. flats for sale in qatar

2012 saw a small rise in real estate investment volumes over 2011's $435 billion, and a 36 percent increase over 2010.

A yearend rush of US investors trying to allocate funds to escape capital gains taxes as a result of the government's "fiscal cliff" crisis contributed to the strong portion. Volume in the United States increased by 51% from the previous quarter. Mexico, Canada, France, Germany, and the Nordic nations all had a good year.

Jones Lang LaSalle's Arthur de Haast, Head of the International Capital Group, said, "The rise in the fourth quarter of the year shows that real estate markets are well past the stabilization stage of the cycle and are now supporting year-over-year increases in transactional volumes. According to this data, 2013 will be another year of growth, with global volumes expected to be between $450 and $500 billion."

 

The following are some of the key points from the Jones Lang LaSalle report:

Preliminary global volumes for 2012 exceeded expectations, ending at $436 billion, a small improvement over 2011's $435 billion and a 36% increase over 2010.

Globally, $41 billion was spent in the fourth quarter of 2012, compared to $100 billion in the third quarter and $119 billion in the fourth quarter of 2011.

In a low-yield, high-liquidity environment with below-trend economic growth expectations for 2013, direct real estate ownership is proving appealing.

As vendors worry about capital gains tax increases and the need to allocate capital, the "fiscal cliff" and pent-up demand drives U.S. volumes up 51 percent quarter over quarter, 34 percent higher than 4Q 2011 and 11 percent higher year over year. Canada and Mexico both had a better year in 2012 than in 2011, indicating that the Americas are growing.

With slower economic growth in China impacting volumes in the second largest region, Asia-Pacific has a consistent end to the year, but full-year volumes are down marginally in 2012 at $92.5 billion compared to $98 billion in 2011.

Europe exceeded expectations by matching 2011 in Euro terms, but was 8% lower in US$ terms, owing in part to a weak Euro. In 2012, the United Kingdom remained the most active market, and production on the continent increased in Q4, with France, Germany, and the Nordics seeing stronger year-end results.

Jones Lang LaSalle expects full-year 2013 volumes to be between $450 and $500 billion, based on the better-than-expected end to 2012, with results back ended following a similar trend to 2011 and 2012. In the Americas, momentum will be sustained, with Asia Pacific expected to strengthen and EMEA expected to perform similarly to 2012.

 

Global Capital Markets Research Director David Green-Morgan said, "Increased real estate allocations from a variety of institutional and private equity firms are beginning to have a tangible effect on the global real estate investment sector. The prospect of higher capital gains taxes in the United States prompted a flurry of year-end deals, but the underlying factor is real estate's appeal in a low-yield, high-liquidity world. Despite the fact that global prices have improved over the last three years, we are only 15 to 20% below the market high. There is still a lot of room for growth, particularly in secondary markets, which have been relatively quiet since the financial crisis but are beginning to attract investor interest due to their higher yields."