Kata Rocks
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Global Capital Flows: Growing caution causes global real estate investment to dip in H1 as expected, but demand remains, reports JLL

Global Capital Flows: Growing caution causes global real estate investment to dip in H1 as expected, but demand remains, reports JLL

Investment in global commercial real estate has cooled slightly this year after a bumper 2018 and caution amid political and economic uncertainty. Global real estate investment volumes hit US$341 billion in the first half of 2019, down 9% from the same period last year, reports global commercial real estate services firm JLL.

economicsproperty
By The Phuket News

Tuesday 13 August 2019, 12:16PM


Asia-Pacific broke yet another record as volumes hit a new first-half high of US$86bn, according to the latest cross-border flows data from JLL. Image: JLL

Asia-Pacific broke yet another record as volumes hit a new first-half high of US$86bn, according to the latest cross-border flows data from JLL. Image: JLL

A dip was widely expected after 2018 marked the highest investment volumes since 2007. Also contributing to the drop has been some restraint among investors, who are contending with a slowdown in global economic growth, political upheaval, and a changing retail landscape.

“As we look ahead to the second half of the year, we expect investment to decline by approximately 5-10%, to around US$730bn for the full year, as investors continue to respond to the overall global environment,” says Pranav Sethuraman from JLL’s Global Capital Markets Research team.

As the current cycle continues to extend, managers are finding it challenging to deploy capital in an environment of elevated prices. Dry powder continues to build and stands at a record US$331bn.

While global investment was down, activity was far from homogeneous. Investment fell in the EMEA and Americas regions, but Asia-Pacific broke yet another record as volumes hit a new first-half high of US$86bn, according to the latest cross-border flows data from JLL.

Demand for commercial real estate hasn’t waned, either. Fundraising by private closed-end real estate funds recorded its highest ever first-half level at over US$80.3bn.

“Risk-free rates continue to plummet, lowering financing costs and widening spreads to property at a time when investors are hungrier than ever for yield,” Sethuraman says.

“Although prices are elevated across many global markets, fundamentals remain sound, underwriting is disciplined, debt levels are generally modest, and investors remain keen to access the sector,” he says.


Click here to download Jll's full Global Capital Flows report.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

 

Have a news tip-off? Click here

 

Phuket community
Driver fined B400 for reckless driving, yet to face bill for fixing streetlight

A fine of 400 baht is comical, but not necessarily funny. I would be willing to bet that this was t...(Read More)


Smartwatch may hold clue to model’s death

So, a pretty girl or boy, labeled as 'product presenter' is actually a prostitute on house v...(Read More)


Driver fined B400 for reckless driving, yet to face bill for fixing streetlight

No reason given? No slippery road, no steering wheel or brake failure? Or wait, perhaps the smog? Or...(Read More)


Phuket health officials issue haze warning, free masks issued

With all this Phuket smog happening/warnings, was the Sunday mass cycling event cancelled for health...(Read More)


Home where doomed ‘pretty’ partied in spotlight

Thank you, GerryT81, You reaction is explaining everything. Now I am sure that if I get ever a invi...(Read More)


Short circuit blamed for temple storage building fire

All incidents/accidents, with in the excuse book: Sparks from circuit breaker, wet road, brake fail...(Read More)


Phuket water-supply pipeline from Phang Nga approved by Cabinet

What for all this continues info in tenth of %% how much water is left. All that bla bla doesn'...(Read More)


Phuket water-supply pipeline from Phang Nga approved by Cabinet

It is even more ridiculous if clowns on here commenting without reading the article properly.Phase 2...(Read More)


Royal Rainmakers show Phuket’s reservoirs from the sky, to continue efforts

... money trough working/planning. Curious for the next week coming uit ( vague?) 'details'....(Read More)


Royal Rainmakers show Phuket’s reservoirs from the sky, to continue efforts

There it is, written! The costs in the proposal are now a 'little' out of date'. Of cou...(Read More)