According to Cushman & Wakefield’s latest International Investment Atlas, the global property investment market delivered $1.18 trillion (€859 billion) of transactions in 2013 – a 22.6 percent increase on 2012 and the highest total since 2007.
Global real estate investment turned a corner in 2013 with market activity and values picking-up as recessions ended, business sentiment rallied and increased liquidity affected most global markets. This strong annual performance has also helped to push prime yields back down to pre-crisis levels.
Looking forward to 2014, C&W is forecasting a 13 percent increase in investment globally to $1.33 trillion (€968 billion), with the US and Western Europe predicted to drive the uplift in activity.
David Hutchings, head of EMEA investment strategy at C&W, said: “The real estate market ended 2013 on a high on the back of greater confidence and rising liquidity. That momentum is building further this year with signs of a firmer occupier market as well as greater investment demand and new sources of debt set to drive investment activity and property pricing higher.”
In EMEA, while trends were again diverse, the upturn was broader than in recent years. The UK and Germany are still driving the majority of regional growth but Russia, Italy, Spain, the Netherlands and Belgium are all posting marked increases. At the same time, markets such as France, Sweden and Poland did little more than keep pace with 2012 while Norway, Switzerland and Denmark all fell back.
Hutchings added: “Core markets remain in high demand but a search for stock, for yield and for performance has rapidly led investors to look further a field. Selected emerging Asian markets, second tier US cities and Southern Europe were back in favour in 2013 and that recovery is set to deepen this year.”