$870 billion (£584.1 billion) in commercial property was traded globally in 2012, according to new figures released by Real Capital Analytics (RCA).
With the final quarter of the year being strong worldwide, investors aimed to complete transactions before the year finished, pushing the global total to $870 billion (£584.1 billion). The first quarter of the year had started off very weak, with many investors hesitant in making hasty financial decisions in a fluctuating market, but now the figures are revealing the highest quarterly totals the sector has seen since 2007.
Strong volumes in the US meant that America led the boost, with there being a 49 per cent increase in the US in the final quarter of 2012, comparable to the same quarter in 2011. Strong sales in China also saw the Asia Pacific region see stronger volumes.
Investment in European property, especially in London, gathered great speed towards the end of the year. Investment in Europe from Asia and the Middle East increased by 52 and 43 per cent respectively, whilst US investors were responsible for two-thirds of all investment in European commercial property.
Joseph Kelly, director of analysis at RCA, said: “Despite pricing levels in Paris and London returning close to their peak levels, these markets are still in favour with investors looking to secure long-term income in liquid markets. Retail investment fell out of favour in 2012, down 12 per cent on 2011 levels, while the apartment sector was a bright spot, up 57 per cent year-on-year.”
Analysts hope that these upwards trends will continue for the rest of 2013, with early figures from January and February suggesting that an optimistic year lies ahead for global investors in the commercial property market.