Property investments showed strong end to last year: C&W

Global property investment markets enjoyed a stronger than expected end to last year, according to new research from Cushman & Wakefield.

All regions saw 'robust demand' for core well-let assets and activity was also boosted by investors' search for inflation-proofed incomes. At the same time, higher inflation hit occupiers' business margins and political uncertainty and turbulence in global finance and debt markets grew in significance, C&W said.

After opening strongly, emerging markets were the main victim of the flight towards safety and liquidity, seeing just a 3% increase in activity, the research shows. Mature markets by contrast saw commercial volumes rise by 21% and took a 60% global market share, up from 56% last year.

This however is likely to prove a temporary setback for emerging markets, C&W said. While globally commercial trading volumes are still barely two thirds of pre-crisis levels, many emerging markets have already set new highs, with Asian volumes 39% up on their 2007 peak and Latin American volumes just surpassing that mark (by 0.5%).

'The global investment market has been very polarised over the past year with the best stock seeing demand and price pressures and second tier property failing to gain traction with buyers or occupiers,' said CEO Glenn Rufrano. 'That looks likely to continue this year but we do expect higher risk strategies to grow in popularity as the year goes by, helped by the promised flow of assets from financial institutions at last starting to pick-up.'