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Europe, Asia Pacific and the Americas record strong growth in global commercial real estate volumes in Q1 2013

Jones Lang LaSalle preliminary numbers show direct investment volumes reached US$94 billion; 8 percent increase over same quarter last year


SINGAPORE, 8 April, 2013 – Commercial real estate continues to rank high on the list of acquisitions for investors around the world as preliminary global real estate investment volumes in the first quarter of 2013 reached US$94 billion, according to Jones Lang LaSalle capital markets research from 60 countries. The real estate investment volumes in Q1 2013 represented an 8 percent increase over the same quarter in 2012. 

Improving confidence in the global economic recovery and a continued demand for direct real estate exposure continue to push volumes higher with Germany, Japan, and the United States all finishing the quarter strong. Other highlights include: 

• All regions show increases over a year ago with the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (AP) all between 7-8 percent higher than one year ago. Growth in the Americas was driven by increases in the two largest markets of the United States and Canada (20 percent and 6 percent growth respectively). 

• AP volumes driven higher by a 30 percent increase in Japan year on year and stronger investment volumes in Singapore and Hong Kong. Overall the region is 8 percent up on Q1 2012. 

• Europe’s three biggest markets, the United Kingdom, France and Germany all contributed to the increase in transactional volumes, with Germany recording investment volumes almost 40 percent higher than a year ago. This helped drive the regional performance to be 8 percent higher in US dollar terms and 6 percent higher in Euro terms. 

• With the improved results in Q1, we maintain our forecast for the year to be between US$450-500 billion, with further growth in quarterly volumes as we move through the year. 

Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle said, “Volumes of almost US$100 billion in the first quarter of the year, in what is historically a quieter period, demonstrates the desire investors continue to have for direct real estate investments. Encouraged by a slowly improving global economic environment and rising property values, especially in core cities, the number of assets for sale continues to increase.” 

David Green-Morgan, Global Capital Markets Research Director said, “The improving sentiment across all real estate markets is encouraging buyers to look at opportunities slightly up the risk curve and vendors are cheered by an increasing number of buyers examining assets in more secondary locations. These two factors are helping to drive volumes higher and we expect this to continue for the remainder of 2013.” 

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Property types in the Global Capital Flows report include hotels, office, industrial and retail. The numbers represented here are preliminary; the final Global Capital Flows report for 1Q 2013 will be released in late April 2013.

What is Global Capital Flows? 

Jones Lang LaSalle’s Global Capital Flows ​analysis provides a set of data designed to help investors understand how commercial real estate capital in the aggregate is moving around the world. The data does not reflect Jones Lang LaSalle’s own business and is not indicative of Jones Lang LaSalle’s overall performance or the portion of the overall market in which Jones Lang LaSalle participates. The findings are released quarterly, first in the transaction volume analysis represented in this release, and secondly in a broader quarterly report which will be issued in the following weeks. All of the current Global Capital Flows data can be found in an interactive website which also acts as a portal for media and clients to access Jones Lang LaSalle’s global capital markets research. Bookmark this site for the most up to date global real estate data.

About Jones Lang LaSalle 

Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management. Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 25,100 employees operating in 78 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012.