JLL sees 2012 deal volume matching 2011

International property adviser Jones Lang LaSalle expects global investment into commercial real estate in 2012 will match last year's volume which totalled US$400 bn (EUR 315 bn).

However, in a preliminary report released on Wednesday, JLL warned that downside risks from the Eurozone sovereign debt crisis could have a 'substantial' effect on transactional volumes this year.

'Debt in all its forms, deleveraging, bank stability and currency movements will continue to dominate the economic outlook in 2012 as they did in 2011,' said Arthur de Haast, head of the International Capital group at Jones Lang LaSalle said. 'Sentiment and economic forecasts in Europe imply that we could be in for a difficult year, although in the Americas in particular confidence does seem to be returning on the back of improving economic indicators, while Asia Pacific looks set to continue on its growth path.'

The $400 bn figure for 2011 marks an increase of 25% over 2010, the adviser said. The strongest growth was recorded in the Americas where transaction volume rose almost 60%, followed by EMEA with an increase of 16%. 'Despite the numerous country, regional and global economic headwinds, commercial real estate continued to attract capital from investors who are looking at opportunities not only domestically, but also within their own regions and other regions globally,' noted David Green-Morgan, Global Capital Markets Research Director at Jones Lang LaSalle.

Transaction volumes rose 3% to $102 bn in the final quarter of 2011 compared with the previous three-month period. However, compared to Q4 2010 direct investment transactions were down 10% in Q4 2011.