By Tom Leahy on August 5th, 2021
After four quarters of declines due to the Covid-19 pandemic, global commercial property sales increased in the second quarter of 2021, powered by the U.S. market rebound, the latest Global Capital Trends report shows.
Sales across the major income-producing property types increased by 207% year-over-year in the Americas, 30% in the EMEA region and 11% in Asia Pacific. As the crisis mushroomed in the U.S. in the second quarter of 2020, activity there buckled; in Europe and Asia Pacific, the impact on deal volume was less severe in 2020 and thus the 2021 bounceback less dramatic.
Globally, investors spent more on apartments than offices in the three months through June, the second quarter in a row that the booming apartment sector has eclipsed the under-pressure office sector.
Investment in industrial properties also nearly surpassed that of offices in the second quarter. As shown in the latest edition of Asia Pacific Capital Trends, also released this week, industrial sector activity in the region reached a record level.
Across the markets, China appears to be cementing its place as the number one market for income-producing real estate in the Asia Pacific region. Acquisitions of retail property have strengthened in 2021, bucking the trend seen in the majority of other large economies, where retail sector activity is well below pre-pandemic levels.
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