Global direct commercial real estate investment volumes will rise by 25-35% on 2010 level as a significant weight of equity capital targets real estate and fresh capital-raising enlivens the market, according to Jones Lang LaSalle's final Global Market Perspective report of 2010.
Global direct commercial real estate investment volumes will rise by 25-35% on 2010 level as a significant weight of equity capital targets real estate and fresh capital-raising enlivens the market, according to Jones Lang LaSalle's final Global Market Perspective report of 2010.
The two-tier real estate market will persist in 2011 and movements in asset prices will be strongly differentiated according to product type, quality and location. Robust competition for trophy assets in the world’s high order business hubs will continue to push up capital values, with London, Paris and Moscow offices expected to achieve double-digit prime capital appreciation in 2011.
The report suggests that banks and servicers will adopt a more aggressive approach to the disposal of non-performing assets, leading to the release of more secondary product. The CMBS market in the US will continue to gather pace, but will remain well below pre-Crisis levels
JLL says that leasing volumes will be at their highest level since the Global Financial Crisis, with corporate occupiers displaying greater confidence to do deals - but they will continue to push for the best possible terms. Asia Pacific will lead the upswing in leasing markets, ahead of Europe and North America
Prime property will continue to outperform secondary. 'Expect double-digit capital value growth for trophy assets in many of the world’s high-order business hubs,' JLL says.