Global Office Sales Down 50%
Emirates Business reports: Sales of office properties worldwide were at just under $100 billion (Dh367bn) in 2009, falling 50 per cent year-over-year, according to a report.
"The fall off was less significant than the near doubling in volume from the first to the fourth quarter, as sales activity exploded in London, capping a year of steady growth," said New York-based research firm Real Capital Analytics (RCA) in a report.
Surging fourth-quarter volume in EMEA, which at $21bn was four times greater than in the struggling Americas and more than double Asia-Pacific levels.
The poor position of the Americas was also underscored by its skyrocketing cap rates, up nearly 300 basis points from 2007, including a stunning 150 basis points in 2009 alone.
By contrast, cap rates in EMEA and especially Asia-Pacific turned decisively south in the second half of 2009, ending the year roughly 100 bps above the 2007 mark in EMEA and dropping back to those levels in AsiaPacific after spiking at mid-year in investor buying power, as pricing declined and investors were able to grow deal size.
EMEA buyers also gained scale even though prices fell less steeply, while buyers in the Americas recoiled at frozen values.
View the full article on Emirates Business: Global Office Sales Down 50%
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Posted by: Nina Turner