The slowdown in the global economy coupled with the effect of the downgrade of the US AAA credit rating could have an impact on real estate fundamentals, it has been suggested. A report published by experts at CB Richard Ellis (CBRE) explained that companies may decide to postpone any plans to relocate or expand, which may hit the market.
However, the CBRE panel revealed that many European cities will see their office and retail property sectors perform well despite economic difficulties due to the fine balance between supply and demand. The organisation noted that vacancy rates of such properties are generally low - largely because few new developments are entering the market, while the desire for a prime location still remains strong.
Research published by Jones Lang LaSalle earlier this week showed that commercial real estate investment transactions are on course to meet the 440 billion USD (266 billion GBP) expected to flow into the sector by the end of this year. Markets with the highest investment volumes during the second quarter included New York, London, Toronto, Hong Kong and Singapore.
- Friday 19 August 2011