Global property markets on the up: C&W

Global investment volumes are forecast to rise 30% this year, hitting EUR 362 bn, led by a reviving US market, according to Cushman & Wakefield’s 2010 Global Investment Atlas which monitors investment flows in commercial property in 56 countries,

The new report launched in March, suggests that this figure is likely to be even higher if the economic recovery remains on track. In 2009, global investment volumes fell 23% to EUR 270 bn, their lowest since 2003. However, as markets started to recover and global liquidity improved, investment volumes ended the year on a much stronger note - rising 104% between the first and second halves of the year.

The upturn was led by Asia Pacific and most notably China, with a 39% increase in investment on 2008. China is now the largest real estate investment market in the world, with the next most dynamic recovery market, the UK, up to second and the US down to third place. If apartment sales are included in this figure the US would take second place.

Yields stabilised in most areas later last year as higher investor demand and limited supply impacted. The global average fell 20 basis points in the second half of 2009 to 7.8% and a further fall of 25-50bp is forecast for 2010.