Global Real Estate Investment

Global Real Estate Investment

Investor confidence in the global real estate market has led to the fact that the volume of transactions in 2018 rose to a three-year maximum of € 876.500.000, compared with € 180.559.000.000 a year earlier, according to JLL. The volume of investment transactions in 2018 is increased by 2%, to € 593.390.500.000.

According to analysts of the investment research, the growing economy, low-interest rates, and the absence of inflationary pressure created ideal conditions for investors. The experts note that investor’s interest in the real estate sector remained stable even in view of the late stage of the current market cycle. High cash flow indicators supported prices and capitalization rates in many markets are now at a minimum.

“Who” is the best?

  • The excellent result in global investment to the world market was provided by the Asia-Pacific region. Here, sales hit record for the second year in a row. In 2018, the volume of transactions reached €996.500.000, an increase of 9% compared with the 2017 maximum.
  • Japan and China are the largest markets in the region and they showed the best results, adding 5% and 6% respectively. In Hong Kong alone, investment deals were worth €024.000.000. This is also a record – an increase of 59% compared with 2017. Australia and Singapore showed a result of + 12% and + 20% respectively.
  • In Europe, the leaders are the United Kingdom and Germany. But if in the UK the investment rate grew by 32%, in Germany the growth for the year was only 5%.

The volume of investment transactions is  increased in Russia in 2018 to € 4.382.500.000. But in the global market growth is not observed.

Analysts believe that the lack of a quality product in combination with the late stage of the market cycle led to a slight decrease – by 5-10%, with an annual result of € 552.195.000.000.

From the point of view of real estate market segments, the greatest growth in demand was observed for warehouse and industrial facilities. The global real estate market continues to show positive dynamics and attract investors.

The company’s analysts expect the global volume of investment transactions to remain at the same level as last year in 2018: according to preliminary estimates, the figure will be about € 626.697.500.000.

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