Global property sales for the last three months of 2008 down 80% from Q4’07

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  • Dubai saw sales volume more than double in 2008
  • Middle East Q4’08 property sales down 62% over Q4’07

Real Capital Analytics, Inc. (RCA) is an independent research firm focused exclusively on the capital investment markets for commercial real estate. RCA offers the most in-depth, comprehensive and current information of activity in the industry. The firm publishes a series of Capital Trends reports and offers an online service that provides real-time, global transactional market information. Bellow is a summary of the latest Global report on the state of the commercial real estate markets with a highlight on Dubai market performance.

A Quickening Global Slowdown

With the typical spate of year-end deals, many have expected the rate of decline in commercial property sales volume to slow in the final quarter of 2008. But, on the contrary – the drop accelerated and activity plummeted. Global property sales for the last three months of 2008 were a full 80% below Q4’07 totals.

Although the Mideast posted a positive yoy change in sales, it was on just $5b in volume. And as Q4’08 sales—down 62% over Q4’07—show, even this wealthy region has begun to crack.

Most Active Markets By Volume (Over $1b)

The low global volume induced surprisingly little turmoil in annual rankings of the most active markets, with seven of the Top 10 remaining on that list. Still, only 76 markets worldwide in 2008 had more than $1b USD in sales volume, down from 135 markets in 2007. Sales for the Top 10 markets declined 62% in aggregate yoy.

Largest Percentage Gainers & Losers

Only one market world wide—Dubai—saw sales volume more than double in 2008. That in a way proves the success of Dubai’s business model.

Where the Trouble Lies

Distressed assets have already appeared in almost every significant commercial property market in the United States and worldwide.

The global report on troubled real estate assets will be featured in the February issue of Global Capital Trends. To receive the complete reports, please visit the website of  Real Capital Analytics, Inc. (RCA).

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