Global Real Estate Investment Doubles Year over Year

Has recession solidified into recovery? According to new research from Jones Lang LaSalle's International Capital Group, preliminary global direct commercial real estate volumes reached $66 billion in the second quarter, nearly double the levels of the market bottom a year ago.

July 21, 2010
By Allison Landa, News Editor

Has recession solidified into recovery? According to new research from Jones Lang LaSalle’s International Capital Group, preliminary global direct commercial real estate volumes reached $66 billion in the second quarter, nearly double the levels of the market bottom a year ago.

When announcing the news, International Capital Group head Arthur de Haast said he anticipates a 2010 global volume of around $300 billion, which represents a 40 to 50 percent increase from last year.

“This is still less than half the pre-credit crisis levels of 2006 and 2007,” he said, “but we must take into account the fact that those were heady years for commercial real estate investment, with unprecedented record trading volumes.”

Could this mean that the market is seeing some stabilization – a happy medium between frenzy and recession? Stranger things have happened.

Let’s break down the numbers: The Asia Pacific region has seen a 21 percent increase year over year, which JLL Asia Capital Markets Group head Stuart Crow asserts that aggregate volumes this year could be 30 percent higher than last year, reaching the mid-$80 billion range. Europe, the Middle East and Africa are up a whopping 80 percent from a year ago. JLL predicts that the region will reach the $130 billion mark by year’s end. And the Americas as a whole have seen investment volume more than quadruple the $5 billion level of the second quarter 2009, ending the second quarter of this year at $21 billion.

If those figures can be trusted, we may just be heading in the right direction. Could this be a byway to another bubble? We can only hope not, but time will tell.