Global realty investment to hit $300 Billion

By siliconindia   |   Friday, 27 August 2010, 15:05 IST
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Bangalore: Investment in commercial real estate is expected to witness a growth of 40-50 percent to $300 billion globally in the current year which is seen as a strong indication of improved investor confidence. A study by the global real estate services firm Jones Lang LaSalle reveals that the first half of 2010 saw investment worth $130 billion in the commercial real estate globally and is likely to touch $300 billion in the full year, representing an increase of 40-50 percent from 2009. "The first half of the year showed that confidence has improved and momentum has increased. While markets across the globe are strengthening, the last few weeks have shown that regional markets are moving with different dynamics," the report noted. In the commercial real estate market, the quickest recovery was seen in the Asia Pacific, primarily dominated by the domestic firms. Europe lagged behind, where the investors still seem more hesitant, due to sovereign debt and austerity packages concerns, followed by the U.S., which had a slow start to 2010, but investment markets are picking up with the stabilized market fundamentals. While, the rental markets are still to catch up in Asia with the improved market sentiment, the rental growth is expected to make a comeback in few European markets over the second half of 2010 and 2011. The report also pointed that the outlook for commercial space demand in Latin America is "overwhelmingly positive".