The International Investment Atlas 2015 report has been prepared by Cushman & Wakefield to provide an overview of the world’s key commercial real estate investment markets in 2014 and an indication of performance in 2015.
The report Overview discusses the main areas of activity, highlighting the size and status of each and giving a flavour for the real estate sectors, also including a brief exploration on where each is heading.
This overview is supplemented by three Regional Market Profiles for the Americas, Asia Pacific and EMEA, all of which include page by page country overviews, totalling 59 across the globe. New this year, we have also highlighted the primary trends and performance indicators for each global region and presented these in a visual page for quick reference.
All parts of the report can be downloaded from our dedicated report microsite: investmentatlas.cushwake.com
Watch David Hutchings talk about the key messages:
- Global investment volumes fell 6.3% to US $1.21tn in 2014, the first fall in 5 years.
- The decline however was solely due to a fall in land sales in China and most markets saw strong demand.
- The US overtook China to be the largest investment market in the world.
- London is again the largest city target for foreign investors, but Paris closed the gap with very strong growth in 2014.
- A focus on core markets remains but interest in tier 2 stock and locations has increased.
- Cross border investors raised their share of trading to 20%
- North America is the largest global investor by some margin but 7 of the top 20 capital sources are now Asian.
Rebalancing the Market:
- Global demand on the rise: Volumes to rise further thanks to still increasing liquidity and attractive relative returns, with demand spreading to new markets, focussed however on the best.
- Risks are higher but the environment is more favourable for property: A wide range of risks are emerging but market fundamentals are stronger thanks to a boost to occupational demand as well as investment.
- Changing needs to drive the occupier: The changing nature of the use of space will drive demand for new locations, specifications and entirely new sub sectors. There will however be losers along the way.
- Balancing act continues: The risk of a bubble continues but a market rebalancing is starting, with a greater spread of global demand and a closing in the gap between occupier and investor.
- Targets for investment to grow more diverse: Focus on core continues but further expansion into new markets will be seen to unlock opportunities and this will include a judicious reappraisal of some emerging markets.