In 2011, cross-border commercial investment activity benefited London, New York, and Paris the most.

According to Jones Lang LaSalle's Year End 2011 Global Capital Flows Report, direct commercial investment totaled US$410.6 billion in 2011, up 28% from 2010. تويتا

"Despite the financial crisis of the last two years, commercial real estate remains a key asset class for many investors," said David Green-Morgan, Jones Lang LaSalle's Global Capital Markets Research Director. "The year 2011 came to a close with a bang, with activity in European markets grabbing the headlines in the fourth quarter, contrary to most expectations."

The following are some of the report's highlights:

The percentage of cross-border purchases increased from 27% in 2010 to 31% in 2011.

Cross-border purchases remained consistent in Q4 2011, accounting for 30% of total volume.

London is the most active city in the world at the end of 2011, with New York, Paris, Tokyo, and Singapore filling out the top five.

Transaction volumes in 2012 are likely to be similar to those in 2011, but negative concerns remain.

 

Global direct investment volumes in the fourth quarter of 2011 were 4% higher than in the third quarter, totaling US$106.2 billion. Volumes have already surpassed $100 billion for only the third time in the last three years. Global direct investment transactions were down 6% in Q4 2011 compared to Q4 2010.

Between Q3 and Q4, cross-border purchases as a percentage of overall purchases remained extremely constant at 30%. Investors, on the other hand, have been more positive on an annual basis, boosting cross-border purchase activity from 27% in 2010 to 31% in 2011. The total value of cross-border purchases in 2011 was about US$125 billion, up 47% from 2010.

"When macroeconomic conditions permit, investors are increasingly willing to seek outside their own nations for suitable prospects," says Arthur de Haast, Lead Director of Jones Lang LaSalle's International Capital Group. "Cross-border activity, on the other hand, thrives when the global economy is strong. If investor mood continues to deteriorate, cross-border and inter-regional flows would be the first to suffer."

Perspectives from Different Regions

With more than US$25 billion in purchases in Q4, the United States remained the single greatest source of real estate capital, despite a 17 percent decrease from Q3. With the exception of the United Kingdom, the most of the major European markets increased. The French took the lead, with domestic and cross-border investment volumes doubling to US$7.6 billion in Q4 from US$3.4 billion in Q3. As a result, their 2011 volumes were 55 percent greater than in 2010.

The Best Investment Prospects

In 2011, London remained the most actively traded city (US$24.3 billion), with New York City coming to second place (US$19.2 billion). Shanghai rose from 13th to 9th place in 2011, with a trade volume of US$7.2 billion, owing to the strength of the Chinese economy.