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Laxman Pai, Opalesque Asia: Real estate deal activity in the US fell slightly during the quarter, but fundamentals and outlook remain strong, said PWC.
The total real estate deal value at $138.2 billion showed a decline of 10.2 %, compared with the same period in 2018. But the current dip overstates the slowdown, and PWC believes that the current market is still quite attractive for real estate industry transactions.
While announced value for RE deals in the first nine months of this year did dip 3.8% from the comparable period in 2018, it's slightly above the five year average of 2.1% for that seasonal period.
Similarly, deal volumes are off slightly from 2018. Third-quarter volumes are off 6.9% from 3Q18. The Jan-Sept 2019 numbers have also been drifting downward; they are now down 1.8% over the five year average for the same seasonal period.
Unlike the other measures, the average deal size is up 3% in the first nine months of this year vs Q1-Q3 2018, it said.
The industrial and apartment sub-sectors contributed most to the industry's deal value during the third quarter, with transactions totaling $40.1 billion and $32.9 billion respectively.
The industrial sub-sector continued to gain investor interest, with deal value rising 62.5% compared with the third quarter of 2018 and more than doubling compared with the second quarter of 2019.
Overall, industrial real estate transactions accounted for 31.6% of the industry's total deal value during...................... To view our full article Click here
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