Degi, the real estate investment arm of German insurance giant Allianz, says the volume of worldwide property transactions will reach a new record level of around $800 bn (EUR 568 bn) in 2007. This would represent a rise of almost 18% on last year’s total of $682 bn (EUR 484 bn), which itself was 38% up on 2005. The volume of cross-border transactions alone is already up by 73.5 % to $ 288 bn (EUR 204 bn) this year.
Degi, the real estate investment arm of German insurance giant Allianz, says the volume of worldwide property transactions will reach a new record level of around $800 bn (EUR 568 bn) in 2007. This would represent a rise of almost 18% on last year’s total of $682 bn (EUR 484 bn), which itself was 38% up on 2005. The volume of cross-border transactions alone is already up by 73.5 % to $ 288 bn (EUR 204 bn) this year.
Degi note in their new report, Global Values, that investments are being driven by the continuing globalisation of property markets and a worldwide economy that continues to be buoyant. The report also anticipates a turnaround to rising yields from 2008, and says that investors will become more selective in their choice of investment destinations and products.
The report analyses 75 office property locations in 50 countries. These locations are classified for risk against macro-economic and property sector criteria. As in last year's report, the list was headed by New York, followed by London, which is up one place. The two German investment centres, Munich (6th) and Frankfurt/Main (9th) have also found their way into the international office location top ten.
