Cross-Border Investment Rises in 2011

The number of cross-border real estate investments made in 2011 was significantly higher than in 2010. In its year-end Global Capital Flow report, Jones Lang LaSalle (JLL) revealed cross-border transactions were up by...

The number of cross-border real estate investments made in 2011 was significantly higher than in 2010. In its year-end Global Capital Flow report, Jones Lang LaSalle (JLL) revealed cross-border transactions were up by 47 per cent compared to 2010, equating to nearly USD 125 billion (GBP 79 billion). Lead director at the international capital group of the company Arthur de Haast commented: "This is a firm indication that investors are prepared to increasingly look outside their own countries for suitable opportunities when macro circumstances allow."

London, New York and Paris were the top targets for investors, with all three cities experiencing a rise in the amount of money flowing into their commercial property sectors. The UK's capital saw USD 24.3 billion invested in its real estate markets in 2011, up from USD 21 billion a year earlier. Meanwhile, New York recorded a 75 per cent increase in the amount of investment it received, climbing to USD 19.2 billion from USD 11 billion in 2010. A more modest rise was recorded in Paris, with transaction volumes up by 24 per cent to USD 14 billion. Offices continue to be the most sought-after asset class, the firm added, although retail has made further gains this year and now accounts for nearly 30 per cent of global direct investment in commercial property.

Commenting on the health of commercial real estate in London earlier this week, head of forecasting at JLL Andrew Burrell explained the city's property sector is resilient for a number of reasons. He stated: "It is a big market - it has a big range, [with] a lot of structural advantages that other markets don't have. When other markets are looking a bit weak, people always seem to want to come back to London." Mr Burrell added many investors from Asia and the Middle East have been targeting assets in the UK's capital because it is considered to be a secure location over the long term.

- Monday 06 February 2012

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