Asia-Pacific is the world leader in investment growth.

Due to the increase in business in Asia, global direct business investment in real estate grew 10 percent year on year during the second quarter. In the second quarter, direct trade real estate volumes in Asia Pacific rose by 18 percent compared to the same period a year earlier, according to Jones Lang LaSalle. On the other hand, outbound investments from South Korea and China throughout the first half of this year more than quadrupled in comparison with 2012. supplier



"As investors look to diversify their portfolios into major world cities such as Fresh York and London, we are continuing to witness the emergence of new capital out of Asia Pacific," said Alistair Meadows, director of the Asia Pacific International Capital Group JLL. "Investors from China and South Korea, notably in the residential and office sectors, have propelled this expansion over the last six months, and for several years emerging market corporate capital is expected to become the main topic of trade investment markets."


The second quarter 2013 saw a direct investment of $121 billion in worldwide immobilization, up 16% from the previous quarter and 10% from the preceding year. According to the latest Global Capital Flows study by Jones Lang LaSalle, in the first half of the year, total volumes hit $225 billion.


Cross-border commerce rose by 13 percent, or 42 percent of total investment activities, reaching $71 billion in the first half of 2013. In the first half, investments of 12 billion dollars were made from America and Asia Pacific into Europe, up 18% from the previous year. Asia Pacific had the greatest foreign investment with $8,5 billion spent in European and American commercial real estate.


London got 60 per cent of the $12 billion worth of investment that continued in trends in Europe in the first half of the year from the Americas, the Middle East and Asia-Pacific. According to JLL, investment in secondary cities is increasingly being sought by investors.


"Asia Pacific and the Americas are witnessing an ever-growing investment demand for direct commercial property, however, as compared to what we observed last year, both new and seasoned investors are assuming more risks," said Arthur De Haast, lead director, JLL's international capital group. "This has brought more cash to secondary cities, especially in Europe and the USA."


In the first half of this year, Tokyo's transaction operation rose by 50 percent to the same level as London and NYC with volumes in excess of $10 billion.


The U.S. remains the most successful worldwide real estate buyer. With almost all of their purchases remaining in Japan, the Japanese were the second most successful purchasers.


JLL retains its estimated worldwide investment of 450 to 500 billion dollars for the whole year, based on a 10 per cent growth in the first half.


"This more broad-based operation should continue and sustain volumes during the second half of the year, which is generally more busy than the first," said Mr. de Haast.

Comments

Popular posts from this blog

Five private islands in the spotlight for sale

Things you need to know in 2021 about Airbnb!

Overview of the market