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Global Real Estate Market to Reach US$24.7 Trillion by 2015


Toronto News, (PR) April 15, 2012

The global economic recession dented prospects in the construction sector due to stringent credit conditions and decreased business confidence. Residential buildings segment remained depressed due to high unemployment rates, while industrial and commercial properties witnessed drop in occupancy rates, tenant demand, and rentals. Residential housing market registered declining home ownerships, new constructions, and eroding property values. The global real estate market is slowly recovering from the economic recession driven by strengthening fundamentals, increased capital availability and availability of alternative sources of finance. Improved business spending, revival in manufacturing activity and increased capital flows in real estate market are expected to bestow steady growth prospects in the global real estate market.

With the effect of recession ebbing, the real estate and construction industry recovered in few US markets and witnessed strong resurgence in Canada and China. However, a number of owners of commercial or home properties are expected to continue facing difficult conditions as the value of properties is still below the cost of purchase, and various mortgage debts are at higher levels than the value of underlying properties. Commercial mortgage foreclosures and delinquencies are also expected to continue affecting the industry. On a corporate level, the industry is expected to witness consolidation of development and construction firms, which would primarily focus on debt reduction, cost control, as well as risk management. Investments in transportation, education facilities, highways, healthcare facilities, and government offices would provide opportunities to commercial construction firms

The European real estate markets are beleaguered by a number of challenges such as austerity measures imposed by struggling economies, market regulations, weak credit markets and a looming sovereign debt crisis. In addition, concerns over struggling economies such as Spain, Portugal and Italy continue to dog the market. Despite the prevailing grim market situation, availability of equity is expected to increase in future with funds flowing in from foreign investors, private equity funds and institutions. However, most of the investment is expected to be directed towards large economically robust cities such as Paris and London. Real estate industry across Asian countries is witnessing robust growth owing to the buoyant economies. Some of the major real estate markets in Asia include China, Australia, New Zealand, India, Hong Kong, Thailand and Vietnam. Increasing purchasing power of people and increased commercial construction activity favor growth in the regions real estate industry.

The research report titled Real Estate: A Global Outlook announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers an aerial view of the global industry, identifies major short to medium term market challenges, and growth drivers. Market discussions in the report are punctuated with fact-rich market data tables. Regional markets elaborated upon include United States, Canada, Japan, France, Germany, UK, China, India, Australia, Philippines, Saudi Arabia, UAE, and Latin America, among others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.

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