RCA Insights

Q2 2016 Global Capital Trends: Activity Declines Across Regions

By 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.

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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.

If you are a current RCA subscriber log into your account to download the full Q2’16 report.

Simon Mallinson

Executive Managing Director, EMEA & APAC
smallinson@rcanalytics.com

Based in London, Simon Mallinson joined Real Capital Analytics in January 2013. Simon has board level responsibility for EMEA and APAC, with a particular passion for the continued development of RCA’s industry-leading client service and capital markets analytics.

Previously, Simon was Senior Director leading European Research at Invesco Real Estate. Prior to Invesco, Simon held a number of roles with IPD (now part of MSCI) in London and the United States. As Head of US Services, based in Chicago, he established IPD’s first North American office.

Simon is a Board Member of US association NCREIF, a member of RICS and is active across a number of other global real estate associations. He holds degrees from both Leeds and Manchester University, UK. Simon has set foot in 48 U.S. states and is looking for an excuse to visit Maine and Alaska.