Real estate investment is on the up and will continue to climb throughout the year, claims Alternative Asset Analysis (AAA).
Boston, MA, USA, July 13, 2011 -- Real estate investment is on the up and will continue to climb throughout the year, claims Alternative Asset Analysis (AAA).
Their claim is based on the new report from Jones Lang LaSalle’s global capital markets experts. The research findings show that direct real estate investment, on a global scale, increased by seven per cent in the second quarter of the year to $101 billion. The increase on a year-on-year basis was an even more impressive 47 per cent.
Jones Lang LaSalle’s head of international capital, Arthur de Haast, explained that the growth has been driven by increases in North America: “The upswing in activity continues, with exceptional gains in North America, which was late to the recovery, driving that region to the top spot in terms of volumes."
He went on to add that some deceleration in the recovery will likely occur due to debt concerns in some regions and over optimism in emerging economies. However, "The pipeline of product in the market gives us confidence that full-year volumes will reach our forecast of US$440 billion,” added de Haast.
Real estate investment volumes increased by 56 per cent in the US and Canada over the second quarter, compared with the first, while investment within the EMEA region remained steady at around $34 billion. The Asia-Pacific region actually saw a 30 per cent fall in real estate investment compared to the first quarter, partly due to the devastating tsunami and earthquake in Japan. However, the region still recorded healthy year-on-year gains.
Anthony Johnson, an analysis partner at AAA, which advocates alternative investments, such as real estate and forestry, said: “The positive upswing in investments into real estate around the world shows that there is a growing appetite for alternative investments.” He added that real estate in Brazil is still an extremely popular choice, thanks to its expanding economy, however, the rate of investment slowed down slightly from earlier in the year. AAA said it would encourage investment in Brazil as there is still room for major economic growth in the region.
Mr Johnson added, “Investment in managed forestry projects in Brazil through firms like Greenwood Management, offers an opportunity to take advantage of legislation changes to restrict deforestation. The demand for forestry products both from within Brazil and elsewhere is still growing, but the wood now much increasingly some from sustainable sources.”
Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
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