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Torsten Steiner

Around the globe in two minutes

2014 so far has seen a further recovery in real estate markets. Europe has seen an uplift of investment volumes. On a city level it is New York that was able to secure the lead position in real estate transactions. Read more for the full story.

Overall, H1 global investment volumes have been broadly in line with H1 2013 levels.

However, Europe has recorded the highest growth compared to last year, with Spain and the Netherlands being up more than 50%. Europe is also the region that has attracted the highest share of cross border capital compared to the other regions.

A modest increase in volumes was seen in the Americas, with San Francisco showing the highest growth numbers, on the back of rental growth supported by the tech industry and a land constrained city. Investors are targeting more tertiary markets, with a higher share of retail and industrial assets than before.

Only Asia Pacific saw a slight decrease in overall transaction volumes – the first in 2 years. Australia bucked the trend with the highest investment volumes in Q2 since the GFC.

The highest volumes on a city level were reached in New York, London, Tokyo, LA. San Francisco and Paris shared 5th position. Worth mentioning here is the high growth rate in Paris backed by very large deals (up 70% compared to last year and the highest volumes on record). SF is also up 50%.

The outlook for H2 2014 remains positive with higher global volumes expected than 2013, however, the recent political turmoil in Gaza and Russia have added a higher level of uncertainty. Europe, especially, could suffer from sanctions and counter sanctions with Russia.


Top 10 cities (investment transactions H1 2014)
1. New York
2. London
3. Tokyo
4. LA
5. San Francisco / Paris
6. Washington DC
7. Hong Kong
8. Dallas
9. Sydney
10. Chicago

Sources: RCA, August 2014 / JLL / TIAA Henderson Real Estate

Disclaimer Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

 

Torsten Steiner

Torsten Steiner

Research Associate

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