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Jones Lang LaSalle preliminary numbers show U.S. fiscal cliff tax concerns and pent-up demand lifted 4Q volumes to end the year ahead of 2011
London, Chicago, Singapore, Jan 10, 2013 – Global real estate investment volumes in 4Q 2012 rallied, with US$141 billion transacted over the quarter to lift the year’s total preliminary volume to $436 billion, according to Jones Lang LaSalle capital markets research from 60 countries. The real estate investment volumes in 2012 represented a slight increase on 2011’s $435 billion, and a 36 percent increase over 2010.
The strong quarter was attributed, in part, to a year-end rush of United States investors seeking to allocate funds to avoid capital gains taxes from the government’s “fiscal cliff” crisis. U.S. volume rose 51 percent quarter on quarter. Mexico, Canada, France, Germany and the Nordic countries also finished the year strong.
Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle said, “The surge in the final quarter of the year demonstrates once again that real estate markets are well through the recovery phase of the cycle and are now supporting year-on-year increases in transactional volumes. Based on this evidence we anticipate that 2013 will be another one of growth with global volumes set to be between $450-500 billion.”
David Green-Morgan, Global Capital Markets Research Director said, “The greater allocations to real estate from a number of institutional and private equity groups are starting to have a real impact on the global real estate investment market. The threat of higher capital gains taxes in the U.S. triggered a wave of year-end transactions, but the underlying factor is the attraction of real estate in a low-yield, high-liquidity environment. Despite the improvement in values over the last three years globally, we are still 15 to 20 percent below the market peak. There remains a great deal of upside potential, particularly in secondary markets which have remained subdued since the financial crisis but are starting to attract investor interest given their more attractive yields.”Notes to the Editor
Property types in the Global Capital Flows report include hotels, office, industrial and retail. The numbers represented here are preliminary; the final Global Capital Flows report for 4Q 2012 will be released in late January 2013.What is Global Capital Flows?Jones Lang LaSalle’s Global Capital Flows analysis provides a set of data designed to help investors understand how commercial real estate capital is moving around the world. The findings are released quarterly, first in the transaction volume analysis represented in this release, and secondly in a broader quarterly report which will be issued in the following weeks. All of the current Global Capital Flows data can be found in an interactive website which also acts as a portal for media and clients to access Jones Lang LaSalle’s global capital markets research. Bookmark this site for the most up to date global real estate data: - http://www.joneslanglasallesites.com/gcfAbout Jones Lang LaSalle Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com.
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