Could this quarter become known as the period when property's stride changed? Supporting the sector's increasingly energetic steps is the easing of credit conditions and the consequent boost to investor activity, rising capital values in core markets, the REIT sector revival and the re-emergence of sale and leasebacks. With half the deals in Q1 being cross-border, the property market is walking taller around the world.
There are still concerns though that property's stride could be knocked off balance by further economic challenges, by growing concerns over inflationary pressures in the fast moving markets of Asia Pacific, and by the possibilities of sovereign debt default and the consequences of inevitable tightening of monetary policy.
Despite these worries the real estate sector has regained its serious appeal to a wide range of investors and as economies continue to recover the volumes of capital targeting property are increasing. The corporate world, still with an eye on cost management and value creation are themselves finding innovative solutions to financing space and to mitigating lease liabilities.
While the pace varies global property markets seem back on track.
Economic recovery filtering through to real estate
Broad range of investors now active
Cross-border momentum building
Debt availability improving, but chasing narrow band of assets
Growth in corporate sale-leasebacks activity
35-45% growth in investment volumes projected for 2010
Global Market Perspective is Jones Lang LaSalle's regular view on the impact of economic forces on property markets worldwide. It is a unique combination of updates from professionals on the ground and the insights of this leading research organization. Below is a snapshot of the April 2010 Perspective.