Investors looking to the future should consider looking abroad for retail real estate, as analysts suggest investment in it globally would hit $180 billion a year by 2020. The report is by Jones Lang LaSalle, the international capital group, and considers the growth of some 50% on projected volumes of some $110 billion to $125 billion will be due to increased activity across borders.
The report was presented at the 2012 world summit of the International Council of Shopping Centres in Shanghai, and shows that China and India are at the top of Jones Lang LaSalle's Retail Real Estate Momentum Index. The index identifies which are the top 20 countries where retail real estate has the strongest momentum globally.
The report states that in the last decade retail real estate worth over $1 trillion has been traded all over the world, with direct investment globally averaging over $100 billion a year since 2004. Annual volumes reached $122.5 billion in 2011.
Investors in the US are aware of the growth in cross-border activity and are constantly looking at overseas investments.
Arthur de Haast, head of Jones Lang LaSalle, said: "The number of investable geographies has expanded globally as growth markets like China, Brazil and Turkey are attracting global investors. Together with an improvement in the quality and availability of retail assets, rising liquidity levels and further progress in real estate transparency, the retail investment sales sector is set for further rapid globalization."
