The global property
investment market delivered $1.2 trillion of transactions in 2013,
a 22.6 percent increase from 2012 and the highest total since 2007, according
to Cushman & Wakefield’s latest International Investment Atlas report.
Global real estate
investment owes this rebirth to market activity and values picking up in 2013
as recessions came to an end and business sentiment resurged, ergo increased
liquidity affected most global markets.
Now looking ahead into
2014, the commercial real estate services firm is forecasting a 13 percent
increase in investment globally to $1.3 trillion, with the United States and
Western Europe seen as the major drivers of the increase in activity.
“The uplift will be
driven by an even stronger weight of capital but critical to the growth is a
modest increase in supply from profit taking, the start of new development, a
move up the risk curve and notably in Europe, as distressed assets are sold be
restructuring banks,” David Hutchings, head of EMEA investment strategy,
and the lead analyst on the C&W report, told Commercial Property Executive. “The increased demand meanwhile stems
from rising pension and institutional allocations as well as individual demand
for a real asset, which offers a relative real yield but an ability to see that
grow over time as economies recover.”
In the report,
Hutchings added that core markets continue to be in high demand, but a
search for stock, for yield and for performance has rapidly led investors to
look further afield, in such emerging markets as Asia and second-tier U.S.
cities along with Southern Europe, promoting a deeper recovery this year. He
concluded that if investors can see past the politics, the U.S. market
must be strongly placed to outperform in 2014. All fundamentals point to
good growth and the U.S. market will be increasingly a target for international
capital.
Read the full report here: http://bit.ly/1g5nfTw
Article source: http://bit.ly/1fU9ebe
