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STRONGER ECONOMIES OFFER BRIGHT SPOTS IN MIXED OUTLOOK FOR 2012 GLOBAL REAL ESTATE
27 Mar, 2012, China
Despite the unknowns surrounding the debt crisis in Europe and the US, real estate occupiers are not sitting still. Cushman & Wakefield’s Global Economic Pulse presents a mixed forecast for real estate markets in the Americas, Europe and Asia Pacific, but stronger economies in specific markets around the world offer an improved forecast for real estate later in 2012.
“While we have been in the midst of challenging economic times, there is now a growing sense of constrained optimism, and we anticipate the global economy to strengthen during the second half of 2012,” said Glenn Rufrano, President and Chief Executive Officer of Cushman & Wakefield.
High volumes of office leasing activity over the past 12 months have shown that many occupiers are not being deterred by a period of slower growth.
“We have seen strong leasing activity as many organizations recast their real estate portfolios and strategies in preparation for the next expansionary economic cycle,” said Maria Sicola, Executive Managing Director of Research for the Americas at Cushman & Wakefield.
ASIA PACIFIC: Slow Growth Ahead But No Recession
The Asia Pacific economy’s dynamism remains one of the bright spots in the challenging global environment. Steady GDP growth, which continued through 2011 on the back of healthy domestic consumption and investments, is expected to slow slightly, but continue in 2012.
“Increasing intra-regional trade, plus continued economic strength among the region’s powerhouses of China, Indonesia and India should support relatively good growth in the Asia Pacific region,” said Sigrid Zialcita, Managing Director of Research for Cushman & Wakefield’s Asia Pacific region.
Real estate market conditions will remain highly segmented across the region, with generally healthy occupier demand supporting positive office absorption, though at a lower rate compared to 2011. Investors will continue to target well-located, stabilized core opportunities that offer stable income profiles in key gateway cities.