Chicago -- A recent report from Jones Lang LaSalle showed that the current state of real estate markets suggests a temporary deceleration in the on-going global real estate market recovery.
According to JLL’s latest Global Market Perspective report, sentiment is, however, recovering and full-year 2012 commercial real estate volumes are expected to match the robust levels seen in 2011.
Total global investment and leasing volumes fell by around 20% in first quarter 2012, compared with first quarter 2011. This slip can be attributed to a lagged response to heightened investor and corporate occupier caution during the latter part of 2011. A lack of available investment product, shortages of high quality space for lease, combined with an absence of large transactions have also suppressed volumes, according to JLL.
“Despite the apparent volatility in recorded investment volumes, a strong deals pipeline persists,” said Arthur de Haast, head of the International Capital Group at Jones Lang LaSalle. “The weight of capital dedicated to real estate is solid, with further inflows expected from other asset classes.”
Haast added that confidence among real estate investors is returning and, while investors remain somewhat cautious, most are still executing their strategies, albeit with longer transaction times. “On this basis, we are optimistic that full year global real estate investment volumes will remain at similar levels to 2011 at around $400 billion,” Haast said. “The greatest uplift is expected in the Americas, where volumes could be 10-15% higher than in 2011.”