Annual investment volumes in retail real estate could hit $180 bn (almost EUR 140 bn) globally by 2020 due to increasing cross-border activity, according to Jones Lang LaSalle. The property adviser said cross-border activity is showing growth of around 50% on the projected volumes for 2012 ($110-125 bn).

Annual investment volumes in retail real estate could hit $180 bn (almost EUR 140 bn) globally by 2020 due to increasing cross-border activity, according to Jones Lang LaSalle. The property adviser said cross-border activity is showing growth of around 50% on the projected volumes for 2012 ($110-125 bn).

Retail's overall contribution to real estate investment is expected to sit at close to 30% over the remainder of this decade, an increase from the 24% last decade. Growth markets are projected to account for around one-quarter of global retail investment by 2020, compared to less than 10% today. By contrast, established markets will decline from 83% to just above 60%,

China and India top Jones Lang LaSalle's Retail Real Estate Momentum Index which identifies the top 20 countries with the strongest momentum in retail real estate globally.

These are the main findings of the report Redefining Retail Investment which JLL has released to coincide with the International Council of Shopping Centers (ICSC) 2012 Retail Real Estate World Summit, taking place in Shanghai this week.

The report confirms that in the last decade, more than $1 tln of retail real estate has been traded around the world. Global direct investment has averaged more than $100 bn per year since 2004 and in 2011 annual volumes hit $122.5 bn. In 2011 cross-border activity accounted for nearly half of all retail investment whilst levels accounted for only one-quarter of all trade in 2004. Cross-border activity will continue to track at around half of all retail investment, boosting annual investment volumes to $160-180 bn by 2020, representing a 30-50 percent increase on 2011 levels.

Arthur de Haast, head of International Capital Group, JLL said: 'The number of investable geographies has expanded globally as growth markets like China, Brazil and Turkey are attracting global investors. Together with an improvement in the quality and availability of retail assets, rising liquidity levels and further progress in real estate transparency, the retail investment sales sector is set for further rapid globalisation.'