25 Aug, 2011
Cross-Border Transactions Rise 50% to Half of Global Direct Real Estate Investment
Cross-border transactions rose 50 percent to comprise half of the $103.5 billion[1] of direct commercial real estate investment transactions completed in the second quarter of 2011, according to Jones Lang LaSalle’s new Global Capital Flows report. Given the strong start to the year, Jones Lang LaSalle still expects market volumes to reach its full year forecast of $440 billion, so long as current market volatility and uncertainty abates and there are no further significant economic setbacks. In an era of instability, good quality commercial property will benefit, but deals, particularly larger ones, will take longer to complete.
“In the first half of this year, we saw firms investing domestically and the private equity and unlisted funds investing across borders,” said Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle. “Funds are being more cautious with a focus on investing primarily at home and trusting experienced managers with their cross border investments. This trend should continue through the second half of the year if the economic environment remains uncertain.”
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