China was the only country to post a significant gain, up 139% to $156 billion, some 41% of global volume. Without it, volume would have fallen 52%.

"While the annual comparisons reflect broad declines since 2007, quarterly data show a marketplace that appears to be making a remarkable recovery," RCA says. Volumes surged in Q4 to $147 billion, the first rise in seven quarters. "So far, investment activity is rebounding in a clear V shape but risks remain, and some fear the V could easily become a W. Nevertheless, sentiment among investors is much improved and 2010 is starting with a broad but cautious sense of optimism."

Fourth quarter global deals surged 85% against Q4 2008 to $147 billion. Volume was up across markets geographically and across nearly every property type, with hotels the sole exception. Sales of office, retail and industrial properties were up 29% collectively.

Across the regions, China boosted the volume in Asia-Pacific, and this rose 240% in Q4, or 66% excluding China. In Europe-Middle East-Africa, volumes were up 17%, with the UK easily outstripping with a 136% rise. Only the US and Canada saw a slight decline, taking all the Americas down 67% last year in volume, though the region's 6% decline in Q4 as a whole actually represented a significant improvement.

RCA notes: "The rebound in the investment markets is occurring against a backdrop of significant volume of troubled property loans. A surprise over the past year is how few distressed sales have resulted, since lenders are often opting to extend and modify rather than foreclose and liquidate."

New reports of defaulted mortgages and failed commercial property companies exceeded $218 billion in 2009. In EMEA and Asia-Pacific, new instances of distress have slowed considerably and grew by less than 10% in Q4.