The results of a new market research report from Jones Lang LaSalle indicate that global real estate volumes increased in the final quarter of 2012. A total of $141 billion in transactions closed during the three-month period to bring the total preliminary volume for the year to $436 billion.
These real estate investment volume numbers represent a slight increase over the 2011 figures of $435 billion. The increase is more pronounced when considered against the 2010 figures representing a jump of 36 per cent.
A number of factors contributed to the strong showing in the fourth quarter. One of them was the rush of U.S. investors looking to avoid paying capital gains taxes in light of the government’s fiscal cliff situation.
The volume in transactions in the US alone rose by 51 per cent quarter on quarter. Sales volumes in Mexico, Canada, France, Germany, and the Nordic countries were also strong.
The results of the report indicate the Asia-Pacific region had a consistent end to 2012. Sales volumes were down slightly to $92.5 billion from $98 billion in 2011. China’s slowing economic growth was the main factor in these lower numbers.
The European real estate market performed better than expected by matching the 2011 numbers. It was down by eight per cent in US$ due to a weakened Euro, however. The UK market was the most active one in this region.
Arthur deHaast, the Head of the International Capital Group at Jones Lang LaSalle, stated recently that the surge in commercial real estate transactions in the final quarter of the year indicates that the markets are well into a recovery phase.
He went on to predict that 2013 will be a good year for growth and that global volumes will be in the $450-500 billion range.
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