Europe leads record investment growth

Global investment volume in commercial real estate rose by 33% last year to a record EUR 491 bn, according to the International Investment Atlas of property advisor Cushman & Wakefield. The growth was particularly strong in Europe and Asia with increases of 50% and 48% respectively.

The European share of total investments amounted to EUR 225.8 bn. This is equivalent to 46% of the total, up from 41% in 2005. The US accounted for EUR 191 bn, or 39% of total investments worldwide. This marks a decline from 2005 when growth totalled 46%.

Cross-border activity continued to grow in 2006 and now accounts for 29% of the global property investment market, up from 25% in 2005. Cross-border activity is particularly strong in Europe, accounting for almost half of all investments in the region. In Asia the share of foreign investments rose from 28% to 32%. In the US and Canada the share of foreign investments amounted to 13%.

Cushman & Wakefield expects global investment volume to rise further in 2007 to EUR 516 bn, with the European share set to grow to EUR 250 bn of the total. The International Investment Atlas will be formally presented at Cushman & Wakefields Global Capital Markets Conference in Paris on 1 February.