Analysts are predicting that the global commercial property market will continue to post growth into 2011, following a strong finish to this year. Worldwide investment in the asset class is expected to have grown by more than one-third by the end of 2010 when compared to figures from last year.
Indeed, direct commercial real estate investment volume for the year is projected to increase by 35 per cent to 40 per cent over 2009 levels, Jones Lang LaSalle claims. This will mean that volumes for the full year should peak in the region of USD290 billion.
However, the real estate consultant adds that the relatively steep rise in international investment activity that generated optimism over the last four quarters appears to have levelled off.
"A significant weight of equity capital is targeting prime assets across all sectors, but a scarcity of prime product for sale is constraining investment volumes," Arthur de Haast, head of the international capital group at Jones Lang LaSalle, explained.