Property consultant Cushman & Wakefield projected global property investments at $1,061bn in 2013, constituting an increase of 14% from $929bn in 2012.
It anticipated that higher allocations to property by institutions and high-net-worth individuals and families, as well as an increase in new supply, would drive global property investments this year. It added that major global risk factors started to recede, leading to a change in market confidence and momentum.
Cushman & Wakefield projected commercial property investment volumes in developing Asia to reach $361.7bn in 2013 and to account for 34.1% of global investment, followed by North America with $341.2bn (32.2%), Western Europe with $186.2bn (17.6%), Mature Asia Pacific with $147.7bn (14%), Central & East Europe with $16.4bn (1.5%), Latin America with $6.2bn (0.6%), and the Middle East with $1.3bn (0.1%).
It forecast investment volumes in commercial property to increase by 25% in the Middle East this year and to post the highest regional increase, followed by Mature Asia Pacific (+20%), North America (+17.5%), developing Asia and Latin America (+15% each), Central & East Europe (+8.6%) and Western Europe (+4%). In parallel, it forecast average prime yields to fall by 15 basis points this year compared to a drop of 6bps last year, and for prime rents to increase by 4.5%.
Cushman & Wakefield