The multi-speed global economic recovery and fast-moving capital markets will create a demanding environment for real estate investors in 2011, according to LaSalle Investment Management (LaSalle), in the 17th edition of its Investment Strategy Annual.
The multi-speed global economic recovery and fast-moving capital markets will create a demanding environment for real estate investors in 2011, according to LaSalle Investment Management (LaSalle), in the 17th edition of its Investment Strategy Annual.
The annual is a comprehensive survey of, and outlook for, the global real estate markets in 2011.
Looking back at 2010, a number of trends were evident, LaSalle says. Real estate pricing recovered rapidly for 'ultra' core properties, deal flow picked up across the three regions and most importantly real estate fundamentals for investors improved - modestly in Europe and North America but impressively in Australia, Hong Kong, Singapore, and China.
But LaSalle believes that property investors need to get prepared for the challenging realities of a multi-speed global recovery. With continuing aftershocks of the global financial crisis still occurring, very different strategies need to be used depending on which country you are investing in. For example in Asia Pacific, development and leasing will provide some of the best investment opportunities, while edge-of-core properties will be attractive in the UK, France and the United States. Investors should look to take advantage of financial distress in Japan, Mexico, the US, the UK and Germany.
Report co-author Robin Goodchild, LaSalle head of European Research and Strategy: 'Portfolio managers should anticipate taking a more aggressive stance toward leasing, re-financing, and selling in 2011. As deal flow picks up, investors will be able to re-position portfolios through more active management for the first time in several years'.
