Though direct commercial investment volumes fell year-over-year in the third quarter, performance in major global property investment markets remains strong, reported Jones Lang LaSalle (JLL), Chicago.
Direct commercial investment volumes fell 8 percent to $96 billion in the third quarter compared with a busy third-quarter 201 1, with robust activity in the major markets offset by weakness in a number of smaller and emerging markets.
"While general sentiment continues to be constrained by the economic environment, transaction volumes have been robust overall for the last quarter due to high levels of interest in offices, retail and industrial real estate in major global markets," said Arthur de Haast, head of the International Capital Group with Jones Lang LaSalle.
Investors have been placing capital in the major cities in these safer markets, de Haast said. "These larger markets have more liquidity and lower risks, and while returns might not be as attractive as emerging markets such as Brazil, India and China, these economies have slowed and market transparency is lower," he said.
The Americas region has seen $126 billon in year-to-date investment volume, identical to this time last year; the Asia-Pacific region slid to $68 billion so far in 2012, compared with $71 billion a year ago, while Europe-Middle East-Africa region volumes have fallen to $96.5 billion ([euro]75 billion) compared with $109.4 billion ([euro]85 billion)...