Encouraging signs for the global real estate market in 2014
There is good reason to be optimistic about the global real estate market in 2014, as the world economy regains some vigour, business confidence improves and strong corporate balance sheets encourage increasing capital expenditure, reports Jones Lang LaSalle.
The study, devoted to the prospects of the global market, covers the fourth quarter of 2013 and shows that almost all major markets are recording sales volume growth - and the weight of money, combined with an improving lending environment and heightened risk appetite, point to further uplift over the coming year.
The report predicts that the global markets are on track to surpass the volume of $500 billion for full-year 2013 with a further 10% growth in 2014. Office rental growth expected to gain momentum, increasing from 1% year-on-year currently to 3.5% in 2014.
Jones Lang LaSalle’s report predicts a scenario where 2014 global sales volumes are potentially only 20-25% lower than the boom years of 2006/2007.
However, the global leasing markets are less exuberant, the report says. Based on data for future transactions, as well as long-term indicators such as housing construction, the 3rd quarter is marked by a stabilization of demand for office spaces.
The forecast is that employment levels will remain high throughout 2014. The midterm outlook for office, retail and industrial property markets remain strong and suggest growth.
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