Global investment activity increases for 2015

Global commercial property investment grew sharply in the first half of 2015 to reach US$318 billion, a 15 per cent increase on 2014, finds new research from DTZ.

According to DTZ research, the global increase masks differences across the regions, with Europe and North America remaining firmly in growth mode, while activity in Asia Pacific has slowed since last year.

Over the last 12 months, European volumes rose 23 per cent to US$274 billion. In North America volumes increased by 18 per cent to US$311 billion. In contrast, the Asia Pacific region was seven per cent lower at US$90 billion.

“After a record year in 2014, when US$104 billion was invested in Asia Pacific real estate, investment volumes in the first half of the year have slowed. In some markets this is due to lack of suitable product, which was evident in the first quarter of 2015 in Australia,” says Dr Dominic Brown, DTZ’s head of Asia Pacific research.

“A mismatch between buyer and vendor expectations also exists in some markets around the region.”

London retains its position as the most traded market, with more than US$39 billion transacted in the 12 months, seven per cent higher than a year ago. Manhattan was the next most traded market (US$28 billion), followed by San Francisco (US$21 billion).

Tokyo, at US$18 billion, was the most traded Asian market and fourth largest globally, although volumes were flat compared to the same period a year ago.

Sydney was ranked second in Asia Pacific and tenth globally with US$8.2 billion traded, up more than 15 per cent on last year’s figure.

DTZ completed US$63 billion in transaction volume globally in 2014 on behalf of institutional, corporate, government and private clients.

To see the full report click here.