By Simon Mallinson on August 11th, 2016
Global commercial real estate investment volume fell 6% YOY in Q2’16, the latest edition of Global Capital Trends reveals. Regionally, while the U.S. saw some recovery towards the end of the quarter, European activity was dealt a blow by Brexit uncertainties, and Asia Pacific suffered from economic and political concerns.
For the first six months, the total investment volume dropped 13% YOY. There was a significant 24% decline in income-producing investment activity in H1’16. This decline was partly offset by a 18% growth in development site investment volumes, largely driven by a recovery in Chinese land sales. Overall Asia Pacific volumes, excluding development sites, fell 48% YOY in Q2’16. Total EMEA investment activity fell 25% YOY and the Americas as a whole declined 9% in Q2’16.
London lost its long-held #2 top market position to sit in third behind New York and Los Angeles. London activity dropped 57% on H1’15 while NY and LA fell less than 10% compared with last year.
Cross-border capital, excluding development sites, accounted for 27% of investment activity in the first half of 2016, notably down on 33% for the start of 2015. Sovereign wealth funds were notable for their absence in the first part of the year, down 100% on the same 2015 period.
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