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Jones Lang LaSalle’s new Global Market Perspective, which assesses the impact of economic forces on the world’s major real estate markets quarterly, reveals that despite some economic uncertainties global real estate markets have continued on a resilient recovery path during the second quarter. The improvements in market fundamentals continue – overall net absorption is positive, leasing volumes are steady, oversupply is gradually disappearing and prime rents are pushing up as the supply gap for prime assets deepens in many core markets.
Leasing activity and corporate demand
The commercial real estate leasing markets show a mixed picture. In Asia Pacific net absorption is still at near record levels, but leasing volumes have disappointed in the U.S. and Europe, where economic uncertainty is impacting demand. The global office vacancy rate stands at 14 percent and is declining steadily. Jones Lang LaSalle expects the rate to fall to 13.3 percent by year end, with development activity in both North America and Europe at a cyclical low.
Corporate occupier demand is particularly buoyant in China and India, while Brazil continues to demonstrate impressive strength in office market fundamentals. A number of South East Asian markets, such as Jakarta, are also now reappearing on the international radar and registering strong corporate demand.
Jones Lang LaSalle remains bullish on rental growth prospects for the top-tier office hubs, with double-digit uplifts forecast for many markets where the balance is shifting in favour of landlords. Strongest rental growth for full-year 2011 is projected for Beijing (35-45%), Jakarta and Moscow (30-40%) and Hong Kong (20-30%).
Hungarian office market
„The recovery of the office market in Hungary is not as resilient as it is in some of our regional competitors. Although the vacancy rate (20.60%) started to decrease in the second quarter of 2011 it is still one of the highest in the region apart from Belgrade, where is stands at 23%. Similarly to the global vacancy rate we expect shrinking availability in the Hungarian market due to the restrained development activity. The total volume of investment transactions for the first half of 2011 amounts to € 300 million indicating a 57% growth on the same period of 2010. Based on the current pipeline of assets under exclusivity we expect the total volume for the year to amount to € 550-600 million.” added Rita Tuza, Head of Research at Jones Lang LaSalle Budapest.
For more information please visit the new website of Global Market Perspective.
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