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Resurgence in Global CRE Transactions Underway
Signs of recovery in some markets and property types
In our most recent issue of Global Capital Trends, we explore where the activity is most likely to strengthen first and why, especially as market volume rankings shift.
A modest resurgence in property acquisitions was recorded in Q2 as global volume rose to $62.8 b, 17 %higher than Q1 and the first increase after five consecutive quarterly declines. However, sales remain at low levels, totaling just $116.4 b in H1’09, 65 % belowH1’08 and are $500 b below peak levels of H1’07.
Nevertheless, the increase in Q2 is a positive sign that appears to be turning into a solid trend as transactions in Q3 are projected to rise further. In addition, the pace is quickening and spreading beyond Asia, the primary source behind the Q2 increase.
The growth in transactions is only a first step in the recovery process. Pricing and operating fundamentals remain in decline and debt remains scarce. The volume of troubled properties in default, foreclosure or bankruptcy continues to mount—$96 billion was added in Q2 and the total is now over $233 billion globally—although resolutions are elusive.
RCA subscribers: get the latest issue at www.rcanalytics.com.
Non-subscribers: purchase this and other reports at www.rcanalytics.com/shop.aspx.
In our most recent issue of Global Capital Trends, we explore where the activity is most likely to strengthen first and why, especially as market volume rankings shift.
A modest resurgence in property acquisitions was recorded in Q2 as global volume rose to $62.8 b, 17 %higher than Q1 and the first increase after five consecutive quarterly declines. However, sales remain at low levels, totaling just $116.4 b in H1’09, 65 % belowH1’08 and are $500 b below peak levels of H1’07.
Nevertheless, the increase in Q2 is a positive sign that appears to be turning into a solid trend as transactions in Q3 are projected to rise further. In addition, the pace is quickening and spreading beyond Asia, the primary source behind the Q2 increase.
The growth in transactions is only a first step in the recovery process. Pricing and operating fundamentals remain in decline and debt remains scarce. The volume of troubled properties in default, foreclosure or bankruptcy continues to mount—$96 billion was added in Q2 and the total is now over $233 billion globally—although resolutions are elusive.
RCA subscribers: get the latest issue at www.rcanalytics.com.
Non-subscribers: purchase this and other reports at www.rcanalytics.com/shop.aspx.
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