Paris has emerged as the world's most liquid real estate market.
JLL, a global property consultancy, reported this week that global commercial real estate investment volumes climbed by 10% to $245 billion in the fourth quarter of 2019. This boosted total activity for the year to $800 billion, up 4% from the previous year's highs, making 2019 the best year for commercial real estate investment on record.
Growth is driven by established markets in all three regions. in qatar
During the fourth quarter, regional activity in the Americas climbed by 15% to $97 billion. This, together with the strong performance in the third quarter, increased full-year volumes by 12% to $347 billion. The United States, where full-year volumes were driven by steady investor demand for industrial assets and ongoing resilience in the office sector, led regional performance. Annual sales activity in Canada has increased by 9%, owing primarily to increased activity in core office markets such as Toronto, Montreal, and Vancouver. Due to large-scale industrial transactions in both markets, Mexico and Brazil both enjoyed double-digit growth in 2019.
In the fourth quarter, EMEA sales volumes increased by 11% to $93 billion, reversing the trend from the previous quarter. Volumes for the full year totaled $284 billion, down 5% from the previous year. Germany saw record investment in 2019, with volumes increasing by 1%, making it the region's most liquid market. Similarly, transaction activity in France increased by 15% in 2019, setting a new high-water mark for the market. Many of the region's other main markets performed well in 2019, with increased activity in Spain, Sweden, Italy, Norway, Ireland, and Switzerland. On the other side, activity in the UK was impeded by Brexit-related uncertainty, but market conditions are projected to improve in 2020 as conclusions become clearer.
Despite a poor fourth quarter in Asia Pacific, the excellent start to the year resulted in a 6% increase in full-year volumes to $169 billion. Core markets such as China, Japan, Singapore, and South Korea, where both domestic and foreign investors are engaged, aided the increase in trading.
Meanwhile, political unrest continues to wreak havoc in Hong Kong, with full-year investment falling by 53%.
The United States' strong industrial performance attracts foreign money.
In 2019, global industrial investment climbed by 24%, reaching $166 billion. Investors are increasingly seeking outside of their home markets for product as bidder pools strengthen and competition for goods intensifies, with cross-border acquisitions in the industry reaching a new record of $53.6 billion.
The United States continues to be the largest beneficiary of foreign investment in the industrial sector, accounting for 47 percent of total cross-border capital flows into the industry in 2019. Due to the greater availability of scale, cross-border investors such as global funds, as well as firms from Canada and the Middle East, have come to the US market. Investors have been drawn by the sector's solid fundamentals, as high absorption has largely offset an increase in new deliveries, resulting in the sector's strongest rent rise in three years.
Paris's economy is fueled by increased activity in the office sector.
For the first time in history, Paris has been the world's most liquid real estate market for a complete year. The total amount invested in 2019 was $30.0 billion, up 7% over 2018. In Paris, investment was mainly concentrated in the office sector, continuing a trend witnessed throughout the year. Sales of offices increased by 6% to $24.8 billion, the highest level since 2007 and accounting for 83 percent of total investment in the Paris market. With eight purchases totaling more than $500 million, large-scale transactions played a significant role in this expansion.