Globe real estate investment to increase
Global direct real estate investment is expected to increase 20 percent to $380 billion in 2011 from last year, and a sharp rebound in the United States will lead the way, Reuters reported.
Investment volumes in Europe, the Middle East and Africa, and Asia Pacific regions are expected to rise by between 10 and 15 percent in 2011, to $150 billion and $95 billion, respectively, according to Jones Lang LaSalle.
In the Americas region, volumes may increase by 40 percent to $135 billion from last year.
“The Americas’ recovery has mainly been underpinned by investor interest in core gateway cities like New York, Washington, D.C., San Francisco and Rio de Janeiro,” said Steve Collins, a Jones Lang LaSalle managing director.
Investments in commercial real estate, including office buildings, shopping malls and industrial properties, reached $316 billion in 2010. That was a 50 percent increase from an eight-year low of $209 billion in 2009, Jones Lang LaSalle said.
“Barring further sovereign debt crises or financial shocks, the momentum of 2010 is expected to continue over the next 12 months, and we predict global volumes for 2011 should increase by 20 to 25 percent,” said Arthur de Haast, head of the firm’s International Capital Group.
At the market’s peak in 2007, global investment volumes stood at $759 billion.