Reflecting improved investor confidence, investment in commercial real estate globally is expected to witness a "healthy" growth of 40-50 per cent to $300 billion in the current year, says a report.
According to the report by global real estate services firm Jones Lang LaSalle, 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 per cent 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 US, which had a slow start to 2010, but investment markets are picking up with the stabilised 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".
