Cross-Border Transactions Increase in 1Q11

Global sales of significant properties rose 23 percent year-over-year to $180.6 billion in 1Q11, maintaining YOY growth for a sixth consecutive quarter, according to Real Capital Analytics.

The Americas led with a 75 percent YOY increase, representing $32.8 billion in 1Q11 transaction volume. Europe, Middle East, and Africa followed with a 34 percent gain to post $44.4 billion. Asia Pacific posted $103.5 billion, an increase of 9 percent from last year. China did not play a role in the moderation of activity in the region despite accounting for three-quarters of its 1Q11 transaction volume.

While the U.S., U.K., and France, continue to see an increase in transaction activity, countries such as Singapore, Germany, and Brazil are becoming preferred investment targets. Australia, Canada, Hong Kong, and Spain saw volumes decrease in 1Q11.

Transaction volumes rose across all property types in 1Q11, with continuing cap rate compression for trophy assets worldwide. China accounted for 90 percent of the $85.7 billion in development site transactions despite government efforts to cool the market. Hotel transactions posted the greatest YOY increase at 56 percent, reflecting $7.6 billion in 1Q11 activity.

Industrial transaction volume climbed 50 percent to $10 billion, while office volume rose by 38 percent to $38.5 billion. Retail transactions grew by 34 percent to $27.4 billion, and apartment transactions increased by 23 percent to $11.4 billion.