Its WOAH time: investment activity in real estate in the world moves into top gear.
According
to JLL in the third quarter of 2019, an unprecedented surge in activity in the
global investment markets is observed - the volume of deals grew by 13%
compared to the previous year and reached $ 205 billion. Thus, during the first
nine months of 2019, this figure leaped up to $ 550 billion, which is 1% more
than last year's level.
The
profitability of private real estate remains stable – it still outranges other
RE classes. The Asia-Pacific region is ahead of the curve, Americas are lagging
behind, while EMEA (Europe, the Middle East and Africa) shows a decline in
consumer demand, especially in retail sectors and office premises. But let’s
start with the beginning!
Asian-Pacific
area. Activity goes beyond all expectations. The best third quarter in history
showed an 18% year-on-year increase in investment. The indicator for the first
three quarters is at a record high - $ 128 billion (+ 10% year on year). The
driving force is China, where investment volumes increased by 56%.
In 2019, in
the Americas, investment increased by 22% and property buyers invested $ 245
billion, which is 9% higher than last year. The leader is the United States
with its 9% outruns all competitors, while Canada and Brazil are also seeing
steady growth.
EMEA
(Europe, Middle East and Africa). The two largest markets maintain negative
influence on regional performance – a sharp double-digit decline in Germany and
UK. The total investment in 2019 is $ 176 billion, which is 13% less than last
year’s same period.
