Global real estate investment hits record high in 2019

Global commercial real estate investment reached an all-time high of US$800 billion in 2019, as investors continued to seek out the solid returns and relative stability of the asset class.

Transaction volumes last year rose 4 percent from US$769 billion in 2018, according to JLL.

“Real estate has continued to draw ever more interest from investors,” says Sean Coghlan, Head of Global Capital Markets Research at JLL. “Global investment is expected to stay elevated throughout 2020 as allocations to real estate from institutional investors continue to rise and, despite valuations and significant competition, the sector remains attractive relative to other major asset classes.”

While investment was up overall last year, activity was far from homogenous. Asia Pacific saw yet another record year with investment in the region rising each year since 2015, reaching a peak of US$169 billion in 2019. The Americas also saw growth, underpinned by the U.S. market as volumes rose by 12 percent to US$347 billion. On the other hand, investment in EMEA dipped by 5 percent to US$284 billion due to concentrated weakness in the UK due to Brexit and structural challenges facing the retail sector across the region.

Investors also are favoring established cities like New York, Paris and Tokyo amid “ongoing political uncertainty and a gradual slowdown of the global economy,” Coghlan says.

Ref: Property Report