(MENAFN- Khaleej Times) With Middle Eastern investors continuing to play an active part worldwide, investment in global commercial real estate markets has sustained the rally, with strong growth in first half of 2013, according to the latest report from Jones Lang LaSalle, or JLL.
A survey covering 60 countries and over 130 cities shows direct investment volumes reached $114 billion in the second quarter of 2013, up four per cent on the second quarter of 2012 and up nine per cent on the first three months of 2013.
Continued strong growth in the second quarter of 2013 has kept global volumes above $100 billion for five consecutive quarters, evidencing increasing investor confidence in commercial real estate, despite volatility in equity and bond markets.
"Middle Eastern investors continue to play an active part in investment markets globally with transactions in many of the world's largest cities, demonstrating their ability to deploy large amounts of capital for the right opportunities," the JLL report said.
Fadi Moussalli, head of the International Capital Group in the Middle East, said that with inflows from relatively high oil prices continuing to provide a consistent source of capital, the opportunities provided by commercial real estate are very attractive for investors from the Middle East at the moment.
"We continue to see capital move from the Middle East to Europe and the United States in particular. Whenever good, quality core assets are on the market investors are attracted by the consistent income flow and possibility of longer-term capital growth."
The global upturn has been evident in Dubai's office market. CBRE reported "growing demand" for commercial space. Prime rents in the central business district had risen by four per cent on quarter-on-quarter, while there was evidence of rental growth for selected areas in Jumeirah Lakes Towers, Business Bay and Tecom. According to a survey by the Royal Institute of Chartered Surveyors, or Rics, Dubai's prime retail space is expected to experience the largest price hike, with demand rising for the fifth consecutive quarter. The Rics survey found commercial development starts in Dubai continued to rebound in the first quarter of 2013.
The JLL report also shows that the Americas saw a 39 per cent rise in transaction volumes in the second quarter compared to the first quarter of 2013, reaching $52 billion and up 11 per cent year-on-year. In the first half of the year, it totalled $90 billion, equating to a nine per cent increase over the same time last year. Quarterly volumes in Mexico and Canada rose significantly to keep pace with the continued acceleration in the US market, which grew by 19 per cent year-on-year in the second quarter of 2013.
The Asia-Pacific and Emea both recorded strong growth over the half-year with 11 per cent and 12 per cent year-on-year increases in volumes respectively.
The largest markets globally continued to see growth over the first half of the year with Japan up 50 per cent, Australia increasing 10 per cent, the UK climbing four per cent, Germany jumping 43 per cent and France improving six per cent, all recording half-year increases compared to the first half of 2012.
JLL's forecasts for the remainder of 2013 remain at between $450 and $500 billion. With global volumes up 11 per cent on this time last year and the second half of the year traditionally busier than the first, the global investment market is on track to surpass last year's volumes.
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