Swaying like bamboo: Pliant property markets to regain confidence

Research shows global real estate markets have continued on a resilient recovery path during the second quarter despite economic uncertainties.

According to Jones Lang LaSalle’s Global Market Perspective, 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.”

Growth is expected in the investment markets as well during the remainder of 2011, and Jones Lang LaSalle now forecasts full-year 2011 global volumes to exceed its original projection of US$440 billion.

They also remain 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.

Jeremy Kelly of Jones Lang LaSalle’s Global Research team said, “We believe that barring significant economic setbacks, the current lull in real estate sentiment is likely to be temporary and global markets will return to a more confident stride in the final months of 2011.”

The Global Market Perspective assesses the impact of economic forces on the world’s major real estate markets quarterly.