Posted on 14 February 2011
Turkey will escape current property slow down
Global investment in commercial property is forecast to fall 17 per cent this year as the continuing financing crisis in the sector drags the market from record levels last year.
The tail end of a spectacular bull run for commercial property before the summer helped to take investment to an all-time high of $930bn (630bn, £468bn) in 2007, an increase of 29 per cent on 2006, according to research from Cushman & Wakefield, the global property agent.
“There is less money in the market with the reduction in the number of debt-backed investors now active,” said David Hutchings, head of research at Cushman & Wakefield.
Cushman & Wakefield predicts that prime real estate in emerging markets will escape the current slowdown relatively unscathed, however, while more mature markets should recover by the second half of this year.
Ten of the top 15 fastest growing markets were emerging countries such as Europe’s hotspots Ukraine, Turkey, Bulgaria and Hungary. Investment in Latin America rose 87 per cent, albeit from a low base, while volumes in North America rose 49 per cent and in Asia 27 per cent. Investment in Europe rose by a more modest 10 per cent to $349bn.
“Foreign investors are expected to be increasingly important in all global markets in 2008 as they seek higher returns and better diversification to reduce risk,” Mr Hutchings said.
Abridged – Financial Times 1 February 2008