Real Estate & Construction Industry27 February 2012
Presentation Plan               Global Commercial Real Estate Investments               Global Residential Market Trends...
Global commercial direct real estate investment totalled USD411 billion in 2011 an increase of 28% over 2010         Comme...
Investments in Asian market remain stable while Europeanregion exceeds expectations. US market sees maximuminvestmentAll f...
The US rental apartment market continues to be strong andremains in favour with investors; Europe and Asian market towitne...
Global office leasing volume remains resilient; Demandcontinues to be strong in China, India, Brazil, the CEE* region,Germ...
Global office vacancy rates continue to decline across all thethree regions, with further falls expected in 2012          ...
During Q4 2011, office rental growth remained slow in someof the major regions                                            ...
According to JLL*, from 2012 to 2014 global office real estateindustry will shift in favour of landlords from tenants     ...
Evalueserve Disclaimer The information contained herein has been obtained from sources believed to be reliable. Evalueserv...
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Real estate and construction industry - growth statistics 02.2012

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Real estate and construction industry - growth statistics 02.2012

  1. 1. Real Estate & Construction Industry27 February 2012
  2. 2. Presentation Plan  Global Commercial Real Estate Investments  Global Residential Market Trends  Global Office Market Trends© 2012 Grant Thornton International Ltd. All rights reserved.
  3. 3. Global commercial direct real estate investment totalled USD411 billion in 2011 an increase of 28% over 2010 Commercial real estate projects continues to attract capital from investors with investments seen in cross-border as well. The 2012 investment levels are projected to match 2011 levels although euro-zone crisis is expected to have a negative impact on global investments. Direct Commercial Real Estate Investment, 2005 – 2012(E) 350 350 2005 2006 2007 2008 300 300 Americas EMEA Asia Pacific 2009 2010 2011 2012 250 250 200 200 150 150 100 100 50 50 0 0 Americas EMEA Asia Pacific 2005 2006 2007 2008 2009 2010 2011 2012 • The Americas region investments volumes were up about 60% in 2011 over 2010. • EMEA region was up 20% in 2011 over 2010. • The Asia-Pacific region investment levels remained same in 2010 and 2011 Sources© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link
  4. 4. Investments in Asian market remain stable while Europeanregion exceeds expectations. US market sees maximuminvestmentAll figures in USD billion 46,4 164,8 43 154,8 37,2 37,4 137,7 97,4 90,9 Q3 2011 85,4 FY 2010 21,7 22,4 Q4 2011 FY 2011 Americas EMEA Asia Pacific Americas EMEA Asia Pacific 34,1 32 Q3 2010 34,1 32,3 Q4 2011 Q4 2010 Q4 2011 15 12,7 12,6 12,6 9,3 8,9 8,2 9,3 7,2 7,5 8,2 7 5,5 5 4,8 3,9 5 4,3 4 3,93,9 3 2,8 4 2 2,5 3,3 1,8 1,92,5 2,41,8 US UK France Germany China Australia Japan Russia Canada US UK France Germany China Australia Japan Russia Canada Sources© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link
  5. 5. The US rental apartment market continues to be strong andremains in favour with investors; Europe and Asian market towitness slow residential growth Residential Market Trends Americas • The US apartment vacancy rate declined by 100 basis points through the first three quarters of 2011. • The vacancies are projected to fall further to under 5% in 2012 as the employment growth improves. • Rents in 2012 are expected to have steady growth with modest acceleration in H1 2012. Europe • In most of the European countries price fall in residential property will be of about 2-6% per year. However home prices in Germany and France will rise strongly to about 7% and 8% respectively. • Prices in Spain are expected to fall down 8% per year while in Ireland the decline will be even more at 14% per year. Asia • Residential real estate sale slowed further across Asia in 2011, with fewer new projects. • Shanghai and Singapore both experienced negative growth, although Manila and Jakarta remained unaffected. • Growth of 3.8% and 2.8% seen in Jakarta and Beijing respectively due to ongoing corporate expansion. • In the Middle-Eastern region, the residential market in Dubai is expected to see mixed performance in 2012. Sources© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link
  6. 6. Global office leasing volume remains resilient; Demandcontinues to be strong in China, India, Brazil, the CEE* region,Germany, the Nordics, Canada and Australia Global Office Net Absorption 2011 Asia Pacific: • For the entire year 2011, net absorption in Asia- Pacific increased by 20% as compared to 2010. However in Q4 2011 the leasing volume was down due to decreased business activity. • For 2012, it is expected that the leasing demand will weaken due to slower corporate hiring. Europe: • In 2011, net absorption in Europe increased by 5% as compared to 2010. • In 2012, it is expected that the overall leasing volumes in Europe will be similar to 2011 levels. The US: • The office sector in the US posted 7 consecutive gains with the last 2 quarters showing maximum rate of increase. • In Q4 2011, a total of 10.6 million square feet of space was absorbed. • The occupancy gains have been mainly from the technology and energy sector. Sources© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link * Central & Eastern Europe
  7. 7. Global office vacancy rates continue to decline across all thethree regions, with further falls expected in 2012 Office Vacancy Rates - Major Markets Q4 2011 Asia Pacific: • Across the Asia-Pacific mixed performance was seen in vacancy levels. • The occupancy rates across North Asia (Japan and South Korea) improved due to affordable office rents. • Vacancy rates increased marginally in Hong Kong and Singapore. Europe: • Due to increase in net absorption rate, the European office vacancy rate declined to 9.9%. • It is projected that European vacancy rate will fall further in 2012. • Moreover, uncertain business conditions will result in postponements in expansion. Americas: • The total vacancy rate across the US dipped to 16.7%, lowest since Q2 2009. • In Brazil, the overall demand for office space remains strong. Sources© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link
  8. 8. During Q4 2011, office rental growth remained slow in someof the major regions Office Rental Trends Asia Pacific: • In most of the regions across Asia Pacific the office rental growth slowed in 2011. • In Hong Kong, the rates declined for the second consecutive quarter. Singapore also saw decline in rate for first time since Q1 2010. Europe: • In Europe the office rents mostly remained unchanged in Q4 2011. • However it is expected that rental will increase in 2012 due to shortage of office space in key regions. The US: • Office rents in the US is expected to increase in 2012 with the recovery in economy. • Technology, energy and healthcare industry is expected to drive the majority of growth. Sources© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link
  9. 9. According to JLL*, from 2012 to 2014 global office real estateindustry will shift in favour of landlords from tenants Global Office Market Conditions Matrix Americas EMEA APAC City 2012 2013 2014 City 2012 2013 2014 City 2012 2013 2014 Chicago Brussels Beijing Los Hong Frankfurt Angeles Kong New York London Mumbai Toronto Madrid Singapore Mexico Paris Sydney City Sao Paulo Dubai Tokyo Tenant Favourable Neutral Market Landlord Favourable Sources© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link * JLL – Jones Lang LaSALLE
  10. 10. Evalueserve Disclaimer The information contained herein has been obtained from sources believed to be reliable. Evalueserve disclaims all warranties as to the accuracy, completeness or adequacy of such information. Evalueserve shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. © 2012 Grant Thornton International Ltd. All rights reserved.

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