Commercial property set for strong 2014

Photo: Quinet

The consultants’ latest global market report shows that the commercial real estate sector has seen demand from investors recover along with confidence in the global economy.

Indeed, global sales totalled $224 billion in the first six months of 2013, 11.7 per cent higher than the same period in 2012.

Knight Frank attributes most of the increase to a fast recovery in the US, but investment in European commercial property climbed by 7 per cent too, fuelled by interest in Spanish and Italian real estate. Asia Pacific markets also saw deals rise 6 per cent, while Dubai continues to drive activity in the UAE.

Nonetheless, popular hubs such as London and New York continue to attract attention thanks to rising prices and appealing income returns.

Knight Frank predicts another positive year in 2014 for commercial property around the world, with prime office capital values set to grow in the next 12 months.

“In Gateway cities and robust economies, there is evidence of increasing investor appetite for riskier assets and markets,” notes the report. “Moreover, specific second tier cities such as Atlanta, Dublin and Edinburgh are now receiving greater attention.”