The rebirth of real estate? Here are the results of the first semester
The volume of commercial real estate investments worldwide has increased significantly compared to last year. In financial terms, there is talk of over 400 billion dollars in the first quarter alone. With a slight increase in the level of the economy, especially in the US, and the respective cut in interest rates, the prospects for the second part of 2019 also seem excellent. What are the salient aspects that characterized the first half of the current year?
• Global (commercial) real estate investments, defined as CRE, with related operations at the entity level, amounted to 250 billion US dollars in the second quarter of 2019. A growth of almost 20 percentage points compared to the previous quarter , but in a net decrease (minus 7.5%) since the second quarter of 2018.
• The American markets, precisely from EMEA and APAC, have all shown a rebound in investments since the first quarter, but a decrease in the number of ultra-large transactions, in addition to the lack of quality assets for sale.
• Strong leasing activities encouraged new demand from investors for (standard) office assets.
• Despite the increase in transactions in offices, both industrial and hotel activity have stabilized.
Investments in the office sector paved the way for second quarter growth. In particular, in the cities of Berlin, Tokyo, Boston and San Francisco, there has been a clear increase in transaction value of more than 50% on an annual basis.
Stunning results, considering the critical periods that have characterized the entire world economy. While most of the sectors that fall into the real estate world have had fewer transactions than in the past few years, offers exceeding $ 100 million have excelled in the office sector.
What is this effect due to? the demand from the occupants of high quality office space remained high due to healthy employment growth. The world economy is experiencing the eleventh year of what is officially the longest ever growth cycle, investors want stable trophy assets to be able to guarantee substantial cash flows and potential downside protection.
In Europe, investment activity is improving in some parts of Europe, particularly in the office and residential sectors. Despite everything, however, the lack of quality products on the market is a considerable constraint, moreover there are still uncertainties about the EU's increasingly elusive and mutable rent control policies, which can dampen and discourage the interest of future investors in the sector residential.
Asia, on the other hand, has become more popular among global investors. In the first half of 2018, only 7.6% of total Asian investments provided inter-regional capital. In the first half of the current year, inter-regional capital inflows reached 11%.
In particular, the CRE investments of Westerners in China and Singapore grew by 350% and 71% respectively, in the first half of 2019 compared to the first half of 2018. What can we say, we hope that this positive wave can continue uninterruptedly in the coming years!
• Global (commercial) real estate investments, defined as CRE, with related operations at the entity level, amounted to 250 billion US dollars in the second quarter of 2019. A growth of almost 20 percentage points compared to the previous quarter , but in a net decrease (minus 7.5%) since the second quarter of 2018.
• The American markets, precisely from EMEA and APAC, have all shown a rebound in investments since the first quarter, but a decrease in the number of ultra-large transactions, in addition to the lack of quality assets for sale.
• Strong leasing activities encouraged new demand from investors for (standard) office assets.
• Despite the increase in transactions in offices, both industrial and hotel activity have stabilized.
Investments in the office sector paved the way for second quarter growth. In particular, in the cities of Berlin, Tokyo, Boston and San Francisco, there has been a clear increase in transaction value of more than 50% on an annual basis.
Stunning results, considering the critical periods that have characterized the entire world economy. While most of the sectors that fall into the real estate world have had fewer transactions than in the past few years, offers exceeding $ 100 million have excelled in the office sector.
What is this effect due to? the demand from the occupants of high quality office space remained high due to healthy employment growth. The world economy is experiencing the eleventh year of what is officially the longest ever growth cycle, investors want stable trophy assets to be able to guarantee substantial cash flows and potential downside protection.
In Europe, investment activity is improving in some parts of Europe, particularly in the office and residential sectors. Despite everything, however, the lack of quality products on the market is a considerable constraint, moreover there are still uncertainties about the EU's increasingly elusive and mutable rent control policies, which can dampen and discourage the interest of future investors in the sector residential.
Asia, on the other hand, has become more popular among global investors. In the first half of 2018, only 7.6% of total Asian investments provided inter-regional capital. In the first half of the current year, inter-regional capital inflows reached 11%.
In particular, the CRE investments of Westerners in China and Singapore grew by 350% and 71% respectively, in the first half of 2019 compared to the first half of 2018. What can we say, we hope that this positive wave can continue uninterruptedly in the coming years!
