A decline on the global real estate market

According to Cushman & Wakefield company, a depreciation of investments in real estates in the world was recorded for the first time in five years in 2014.

Today, Cushman & Wakefield consulting company presented a report concerning a global volume of investments in properties on the international MIPIM trade fair in Cannes. According to C&W, it decreased by 6,3 per cent in comparison to last year and it amounted to 1,21 billion USD in 2014. It is the first time in five years when depreciation of trade flows on the global real estate market was such noticeable.


As „International Investment Atlas” annual report prepared by C&W presents the main cause of such markings is limitation of the scale concerning the purchase of lands in China. However, financial market moods are quite positive. The analysts envisage that 2015 may indicate a rise in investments by 11 per cent to the level of 1,34 billion USD. The greatest activity of investors will be observed in the USA and Europe.


The increase in investment activity in 2014 was higher than the one which was envisaged in March last year, but forecasts for the current year are even more optimistic due to decreasing limitations on the market – says David Hutchings, Director in Investment Strategy Department in EMEA region, Cushman & Wakefield.  


The year 2015 will be characterized by increase in diversification of investments goals. The investors will pay attention to new markets with great potential and possibilities, however, they are going to concentrate on main real estate markets. Moreover, the selective change in approach for certain emerging markets will be noticeable.


Warsaw is on the 19th place in ranking of main cities with the greatest capital of foreign investments in real estates. The total value of transactions in 2014 totaled 2 billion USD.


The increase concerning investments in commercial properties in Europe is followed by the interest in Polish market which is becoming more and more noticeable. Last year, 91 per cent of total volume of transactions in Poland included foreign investors. Furthermore, there is no indication that this rate will be decreased in 2015 – says Łukasz Lorencki, senior consultant in capital market department in Cushman & Wakefield company in Poland.


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