Improving global economic conditions and enhanced liquidity pushed fourth-quarter global commercial real estate (CRE) investment volume to $183 billion, reported Jones Lang LaSalle (AL), Chicago.
JLL reported full-year volume reached $549 billion-18 percent higher than in 2012.
"The global real estate capital markets continue to improve on the back of more optimistic global economic forecasts and investor sentiment," said Arthur de Haast, lead director of JLL International Capital Group. "Real estate is certainly benefiting from the desire of investors to hold hard income-producing assets, alongside and in some instances in preference to more liquid investment opportunities."
de Haast said experienced investors' desire to look at opportunities that require additional asset management or more creative solutions helped push 2013 volumes past his initial expectations. "With this trend expected to continue into 2014, we are confident that investment volumes will continue to grow," he said.
David Green-Morgan, global capital markets research director at JLL, said overall global capital flows remain well below their peak levels, but real estate continues to see an increase in capital flows between countries and regions. "Investors are looking outside their home markets in increasing numbers for opportunities, and this trend is unlikely to reverse in the short-to-medium term," he said. ILL has recorded double-digit growth in transactional volumes in three out of the last four years, and we expect this trend to continue in 2014 with volumes exceeding the $600 billion mark, a 14 percent increase on 2013."
The Americas have seen continued improvements in market conditions and confidence, despite economic and political...