Renewed momentum extends real estate cycle
Global economic growth has invigorated real estate markets worldwide. Leasing demand remains steady, while investors continue to allocate a larger portion of their capital to real estate. Deal flows so far are in line with what we saw in 2016.
2017 Prospects
Capital Values
6%
Increasing
Rents
3%
Increasing
Development
28%
Peaking
Vacancy Rate
12.1%
Rising
Leasing
39 m sqm
Stable
Investment
US$ 650bn
Firm
Leasing, vacancy, development, rents and capital values relate to the office sector. Full-year 2017 forecast values. Capital values, rents and development figures refer to percentage change. Global vacancy rate - percentage value, leasing volumes in million square metres, investment volumes in US$ billions. Source: JLL, August 2017
There is a wealth of analytic information in the most recent report and we will look at it especially as it applies to Germany and compares to other reports. One item that sticks out when looking at residential investment in Europe is the JLL clock:
After all the persistent talk about aproperty bubble in Germany JLL research does not seem to confirm this for Berlin.
Some more headlines from the report:
- Office rental growth quickens
- Western Europe leads as most dynamic leasing market (office)
- Global retail markets facing unprecedented structural changes
- Logistics rents surging
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