Encouraging Q1 Numbers Signal Solid Start to 2011
MBA NewsLink reports: After the release of Real Capital Analytics’ (RCA) latest Global Capital Trends First Quarter in Review, the Mortgage Bankers Association’s (MBA) NewsLink reported on global investment trends in the commercial real estate sector. Globally, investment sales increased by 23% year-over-year in the first quarter, to reach $180.6 billion. The headline increase was driven by substantial rises in the US, Brazil, Germany, and Singapore. China, which became the world’s largest commercial property investment market last year according to RCA data, accounted for $78.2 billion in first quarter volume.
The MBA, also citing RCA data, reported on cross-border capital trends. By the end of the first quarter of 2011, reflecting data over the prior 12 months, Germany, Singapore and Brazil joined the premier US, UK, and France markets as top cross-border destination targets. At the same time, Hong Kong, Australia, Canada, and Spain all fell out of favor with investors willing to traverse borders to make deals.
The MBA related the rise and fall of cross-border targets over the past year to nations’ respective debt-funding gaps, which represent the imbalance between debt and capital valuations in a certain commercial property market. Nations with the greatest debt-funding gaps currently include Japan, the UK, as well as Spain and Ireland.
View the full article on MBA NewsLink: Encouraging Q1 Numbers Signal Solid Start to 2011
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Posted by: Nina Turner