Global commercial real estate transaction volumes hit record levels in the fourth quarter of 2014, according to JLL.
Volumes in the final quarter reached $218 billion, which brought the preliminary volumes for the year to $700 billion, 28 per cent higher than the third quarter and 18 per cent higher than the same period in 2013.
JLL’s Lead Director of International Capital Group, Arthur de Haast, stated recently that Europe and the Americas have been the “driving forces of global growth” and that the economic recovery in the US and the UK has been a key factor.
Mr. de Haast went on to say that JLL expects that real estate will continue to be appealing in a low interest environment and forecasts transaction volumes of between $730 and $750 billion this year. If this is borne out 2015 will be the sixth consecutive year of volume growth.
The Americas
They continue to lead global performance with transaction volumes of $298 billion last year, a 24 per cent increase over 2013.
A strong Q4 in the United States, where volumes reached close to $85 billion, boosted the figures.
The US, Brazil and Mexico have all maintained good transactional momentum throughout the year. Canada was down slightly compared to 2013’s numbers.
Europe
Volume growth was almost identical to that of the Americas, increasing by 21 per cent to $267 billion over the entire year.
The major markets of the UK, France and Germany all saw solid growth of 17 per cent. Some of the smaller markets did even better: the Nordics were up 41 per cent, CEE was up 51 per cent, Benelux was up 61 per cent and Southern Europe increased by 70 per cent.
Asia Pacific
The Region had a stronger than expected final quarter of 2014 and is now back in line with 2013 activity levels.
The $42 billion that was recorded in Q4 was the highest level on record for Asia Pacific representing a near 40 per cent increase over the third quarter.
Full year transaction volumes reached $128 billion.
Australia was up 17 per cent and Japan was up 4 per cent over the previous year. China saw a 20 per cent decrease over the full year, despite having a strong showing in Q4.
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