Global prop­erty to gain from in­creased mar­ket in 2016

The Pak Banker - - 6BUSINESS -

NEW YORK: A newly re­leased re­port fore­casts that prop­erty trad­ing will hit a new record in 2016 with 4 per­cent growth glob­ally. New sources of cap­i­tal, un­sat­is­fied de­mand and a strong sup­ply of debt are likely to re­sult in global real estate trad­ing ac­tiv­ity ris­ing 4 per­cent to reach a record $1.34 tril­lion in 2016, ac­cord­ing to a newly re­leased re­port by Cush­man & Wake­field. "Geopo­lit­i­cal is­sues, length of the re­cov­ery cy­cle, volatil­ity and in­creased un­cer­tainty are lead­ing to dif­fer­ing views with re­spect to as­set al­lo­ca­tion and how best to in­vest," said Carlo Barel di Sant'Al­bano, chief ex­ec­u­tive of Cush­man & Wake­field's Global Cap­i­tal Mar­kets & In­vestor Ser­vices busi­ness.

"This is ben­e­fit­ing real estate as al­lo­ca­tions to the sec­tor in­crease, boost­ing de­mand for as­sets," Sant'Al­bano said. "In this eco­nomic en­vi­ron­ment there is also an in­creas­ing num­ber of will­ing sell­ers aim­ing to crys­tal­lize re­turns, and we there­fore forecast a 4 per­cent in­crease in trad­ing this year, which could eas­ily be bet­tered if cur­rent global volatil­ity lev­els sta­bi­lize or de­cline." Ac­cord­ing to the At­las Outlook 2016 re­port, which re­views in­ter­na­tional in­vest­ment pat­terns from 2015 and an­tic­i­pates mar­ket per­for­mance for the year ahead, global prop­erty trad­ing ac­tiv­ity fell last year for the first time in six years, al­beit edg­ing down just 2 per­cent to $1.29 tril­lion.

Ex­clud­ing land, global vol­umes rose 8 per­cent, with par­tic­u­larly strong in­creases for multi-fam­ily res­i­den­tial and hos­pi­tal­ity, fol­lowed by lo­gis­tics. Cur­rency fluc­tu­a­tions con­tinue to im­pact re­gional vol­umes, which at­tracted in­vestors to­wards the US while di­lut­ing vol­ume growth mea­sured in other cur­ren­cies, it said. De­spite the de­cline in 2015, Cush­man & Wake­field fore­casts trad­ing vol­umes will reach new heights in 2016.

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