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Global deal volume surged 25% in 2011 to $400bn

Property services firm Jones Lang LaSalle says transactions were up by a quarter on 2010’s total despite the numerous country, regional and global economic headwinds.


Global property services firm Jones Lang LaSalle has reported that global deal volumes were 25 percent higher in 2011 than in 2010, with some $400 billion of assets bought and sold.

The Chicago-based firm said in its preliminary data that 2011 had proved “resilient”. It also predicted that 2012 volumes are set to match last year.

David Green-Morgan, global capital markets research director at the firm, said figures suggested real estate continued to attract capital from investors looking for opportunities not only domestically, but also within their own regions and other regions globally. This was despite “the numerous country, regional and global economic headwinds”.

He added: “In 2011 we recorded a 25 percent increase in transactional activity with the Americas up almost 60 percent and EMEA up 16 percent in dollar terms.  Asia Pacific, despite several natural disasters across the region, maintained similar investment levels in 2011 to the strong performance of 2010.”

In the fourth quarter volumes were 3 percent higher than the third quarter 2011, at $102 billion. It is only the third time a quarterly volume has surpassed the $100 billion mark since 2008. However, compared to Q4 2010, direct investment transactions were down 10 percent in Q4 2011.

Arthur de Haast, head of the international capital group said sentiment and economic forecasts in Europe implied that 2012 therefore could be a difficult year, although in the Americas in particular confidence did seem to be returning on the back of improving economic indicators, while Asia Pacific looked set to continue on its growth path. Downside risks from the Eurozone sovereign debt crisis could have a substantial effect on transactional volumes, it also warned.