By Iain Withers
LONDON, Sept 18 (Reuters) – Cross-border investment into commercial property globally jumped 56% to $71.8 billion in the first half of this year, driven by more deals in Asia and Europe including for premium offices, although higher borrowing costs could keep activity in check for the rest of the year, according to research from property agency JLL.
The leap in cross-border deals outpaced more sluggish growth in overall building transactions in the period, which were up just 10% year-on-year to $604.6 billion, according to separate MSCI data.
International investment into property in Asia leapt fourfold to $19.3 billion and increased 31% to $39.9 billion in Europe, according to JLL’s figures.
“There was a re-emergence of the office sector,” Fraser Bowen, a director in JLL’s capital markets business, told Reuters, adding that international investors were particularly active in big European cities including London and Milan. Singapore ranked first globally with $8.7 billion in cross-border volume.
The rate-sensitive sector will likely be weighed down by soaring borrowing costs in the second half of the year, Bowen said. “Our volumes are always pretty well correlated to interest rates,” he said.
($1 = 0.8709 euros)
($1 = 0.7481 pounds)
(Reporting by Iain Withers, Editing by Louise Heavens)
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