Global commercial real estate (CRE) investment reached €369 bln (US$407 bln) in H1 2015. Up 14% from last year, it is the strongest first half to a year since 2007, according to CBRE.
Over several years, growth has increased rapidly however the rate of growth slowed in H1 2015 and was vastly different at a regional and country level. The USA experienced growth of 31% y-o-y, while a strong dollar impacted activity in EMEA (Europe, Middle East & Africa) and Asia Pacific (APAC). In dollar terms, EMEA was up 5% from H1 2014, with APAC down 19% y-o-y.
The UK and Germany were the strongest markets in Europe, taking overall second and third place respectively (US in first place) in the largest CRE investment markets. The top three held a combined share of 74% of the global market in H1 2015, 10% above the long term average of 64% and totalling €273 bln ($301 bln) in transactions.
Rapid uplifts in investment in Europe’s recovery markets also meant significantly improved positions in the rankings for Italy, Ireland and Spain. Recent economic slowdown in Asia has led to China, Singapore and South Korea dropping down in the top 20 rankings during H1 2015.
The influence of global investors varies from as little as 10% in the US, to almost 50% of the market in EMEA. The US was by far the largest contributor, accounting for €23.3 bln (US$25.4 bln) of investment outside its home market. Canada, Germany and China were the next three largest sources, with a combined volume of €20.1 bln (US$22.2 bln) which is considerably less than the US.
Source: CBRE
