CBRE Index Shows Investors Turning from Asia to Americas

CBRE has just released its all-important global index of capital values for Q1 2012. The index shows growth slowing around the world, with the global growth for the quarter just 0.3% the smallest quarterly growth recorded by the index since Q4 2009...

CBRE has just released its all-important global index of capital values for Q1 2012. The index shows growth slowing around the world, with the global growth for the quarter just 0.3% the smallest quarterly growth recorded by the index since Q4 2009. Global values increased by 5.7% on the year. But this is hardly surprising given the fact that investment volumes were down 5.2% year on year.

Perhaps unsurprisingly given the current state of the union (the European Union that is), the Europe, Middle East and Africa region (EMEA) was the worst performing region in the world with values up just 0.7% on the year, compared with a growth of 7.6% in Q1 2011. Again this is hardly surprising given the 22% decline in EMEA investment volumes, beaten only by the 27% drop in Asia-Pacific volumes.

Annual growth of 0.7% is a far cry from the 9.6% growth recorded by the best performing Americas region, but even this doesn't look great against the 19% growth recorded by the then pace-setting Asia-Pacific region in Q1 2011. Capital value growth in Asia Pacific dropped back to 8% in Q1 this year.

Michael Haddock, senior director of EMEA Research, said: 'The slight growth seen in EMEA real estate values must be considered as a positive outcome in the context of the wider issues of the region. While this masks pockets of under-performance, major, more liquid markets are holding, and in some cases marginally increasing, value. Uncertainty surrounding the outcome of Greek and other political and economic changes will dominate sentiment and value movements in Q2 and Q3.'

Investment volumes in the Americas region grew 20% year on year, completing the picture of changing investor sentiment, which is now strongest for the Americas region and much weaker for Asia-Pacific investments.

- Thursday 07 June 2012

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