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Midyear Global Real Estate Investment Breaks Record

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From NREI Online:

Global, direct investment in real estate totaled a record $382 billion during the first half of 2007, a 16.6% increase over the same period last year and more than the entire volume of global investment in 2003, according to provisional figures from Jones Lang LaSalle.

“For the remainder of 2007, Jones Lang LaSalle expects global real estate markets to remain strong, however we expect investors to become increasingly selective about markets,” says Tony Horrell, CEO of Jones Lang LaSalle's European Capital Markets Group. “Globally we continue to see a weight of money targeting the sector — evidenced by the record real estate funds raised by private equity in recent months. Cross border investment remains strong, driven by global, Middle East, North American, Irish, German and Australian funds.”

The Americas, Europe and Asia Pacific achieved record investment volumes in the second quarter, which marked 16 consecutive quarters of global investment growth. In the Americas, total investment surged 32% to $170.7 billion, primarily driven by the trading and re-trading of prime United States properties acquired as a part of private equity led REIT privatizations and subsequent portfolio break-ups. In a notable change from 2006, the majority of prime assets were sold to domestic investors. Overall in the region, however, cross-border investment increased (again). Latin America had a strong half as the market became increasingly sought-after by global, North American and European investors.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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