By Simon Mallinson on August 10th, 2018
In the first half of 2018, U.S. investors cautiously returned to action and European activity slowed in both quarters, the new edition of Global Capital Trends shows. Asia Pacific grew in the first quarter but held steady in the second. Total global transactions of income-producing commercial real estate remained at the same level as a year prior.
Overall global investment grew by 7% compared to Q2’17. Income-producing assets dropped 3% for the quarter, while development sites increased 21% year-over-year. The retail sector showed an increase for the first time in five quarters, but this growth is unlikely to continue as it was inflated by Unibail’s acquisition of the global Westfield portfolio. Retail growth remained negative for the first half of 2018.
The industrial sector remains a bright spot, with volume growing 3% year-over-year in the second quarter and 25% year-over-year in the first half.
Hong Kong continues to surprise with 89% growth in activity for the first half of 2018 compared to the same period a year prior. Of the top five markets, only San Francisco saw a decrease in activity in the first half of this year compared to the same period in 2017.