Global Outlook for Real Estate remains unclear

Macro-economic and political landscape uncertainty suggests that a cautious outlook for commercial real estate is likely to persist into 2012, according to a new report from CBRE Global Research. The Global ViewPoint for 2012 notes that high quality real estate assets in prime locations should continue to perform well compared to secondary real estate and very competitive with regard to other asset classes. Read more

Property investors eye Europe for bargain deals

• Annual Investment Turnover 4% Higher Than 2010
• Exceptional Final Quarter for French Property Investment

With the eurozone economy looking increasingly fragile and the single European currency depreciating in value against most major foreign currencies and the U.S. dollar, activity among property investors looking to take advantage of favourable conditions increased. Read more

Global commercial real estate investment volumes surge in Q1 2011

Global cross border investment volumes increase by 38% in Q1 2011, compared to Q1 2010 according to latest data from Jones Lang LaSalle

Preliminary figures released today by Jones Lang LaSalle’s Capital Markets Research reveals that global direct commercial real estate investment volumes totalled just under US$90 billion in the first quarter of 2011. This figure is down 20% from the previous quarter but up nearly 38% from Q1 2010, indicating the continued appeal of commercial property to a broad range of investors.

Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle said: “We continue to see strong interest for core product in gateway cities from institutional and private investors. However, investors are only moving into riskier markets and products on a selective basis, with many waiting to see more bank-released product or stronger fundamentals first.” Read more

GCC Real Estate Sector in 4Q 2010

• Commercial property market suffers from oversupply across the GCC
• Kuwait and Saudi residential markets continue to witness price escalations
• The pace of declines appears to have slowed down in most markets

A new report released by Global Investment House of Kuwait paints a grim picture of the GCC Real Estate Sector in 4Q of 2010. Bellow are the key highlights:

UAE

The office market remains under pressure in Dubai and Abu Dhabi on the back of continuous oversupply and feeble business demand. Dubai apartment rents dropped 3%, representing the slowest rate of decline in 2010, compared to a 6% decline in 3Q10 while villa rents dropped 1% compared to 4% in 3Q10. In Abu Dhabi, apartment rents lost 7% compared to 3% in 3Q10 while villa rents dropped 5% compared to 4% in 3Q10. Read more

Jones Lang LaSalle announces South African acquisition

Global commercial real estate firm Jones Lang LaSalle (NYSE: JLL) today announced the formation of Jones Lang LaSalle South Africa following the acquisition of one of the country’s leading corporate property service providers, Bradford McCormack & Associates (BMA) for an undisclosed amount. The acquisition will give Jones Lang LaSalle its first dedicated office in South Africa, although the firm is already present at several client facilities across the country.

The acquisition represents one of the largest international investments in the local property services sector to date and points to a strong global commitment towards an already robust domestic commercial property market. More specifically, the deal opens up accelerated business growth opportunities for both firms across South Africa and its neighbouring countries. Read more

Global Direct Real Estate Investment Volumes Constrained by Product Availability in Third Quarter 2010

New research from Jones Lang LaSalle reveals that preliminary global direct commercial real estate investment volumes totalled US$69 billion in the third quarter of 2010. This level is similar to the second quarter of 2010 and indicates that the recovery in investment activity seen in the previous four quarters has levelled off. Direct commercial real estate investment volumes in the first three quarters of this year have reached US$202 billion compared to the US$139 billion transacted over the same period of 2009. Jones Lang LaSalle expects volumes for the full year to reach US$280 to 290 billion.

Fadi Moussalli, Regional Director of the International Capital Group (ICG), MENA at Jones Lang LaSalle commented: “A significant weight of equity capital is targeting prime assets across all sectors, but a scarcity of prime product for sale is constraining investment volumes. Product shortages are also resulting in yield compression and substantial rises in prime capital values across many of the world’s leading office markets, from London to Washington DC to Shanghai.” Read more

Global Cross-Border Commercial Real Estate Investment Recovers

The near doubling of global commercial real estate transactions in the first half of 2010 compared to the same period a year ago was underpinned by a return to pre-crisis levels of cross-border investment, according to new research from Jones Lang LaSalle. Total global commercial real estate investment totaled US$132bn for the first half of 2010, compared to US$76bn in H1 20091, and after reaching a low of 31% of total volumes in the first half of 2009, cross-border2 activity is now back above 40% (43%), a trend set to continue for the remainder of 2010. This reflects a general market pick-up as confidence improved, a return to the globalisation of real estate investment and a search for value by investors.

Looking ahead to the rest of the year, Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle, commented: “Mixed economic news plus longer transaction processes due to investor due diligence may mean that investment volumes do not continue to grow at levels seen in the first half 2010. However, full year volumes will be between US$275 – 300bn for 2010, significantly ahead of 2009 (US$209bn), with cross-border investors continuing to be very active.” Read more

Moody’s/real commercial property price INDEX declines 7.6% for May

Moody’s/REAL Commercial Property Price Indices (CPPI): a monthly report from Real Estate Analytics LLC on recent investment activity and property sales trends in US commercial real estate.

• Transaction Volume at its Lowest Level
• Index Stands 28.5% below April 2008 Levels; 34.8% below peak of October 2007

The Moody’s/REAL National All Property Type Aggregate Index from Real Estate Analytics, LLC, (REAL), measures 125.04 for May 2009, a decrease of 7.6% from the previous month representing the second largest one-month decline after April’s 8.6% decline.  The Index, which has captured price data through the end of May 2009, is now 28.5% lower than it was a year ago and 34.8% below the peak measured in October 2007.  The index also indicated a 32.6% drop in prices over the past two years.

“We cannot underestimate the enormity of what the data has represented in the past two months,” said Neal Elkin, President of REAL. “The fact that this month’s price decline is less than last month’s price decline might be seen as a positive sign in some circles. It could suggest that bottom in prices maybe starting to form, however, we need see higher transaction dollar and deal volume in order to draw a more would definitive conclusions.” Read more