Experts expect better prospects for the global property market by the end of the year

This year the main motive power of growth will be markets in the Asia-Pacific region, say global consultants

Mood and activity of real estate investors globally were hesitant in the first half. After a slow start in 2012 in the second quarter experts saw movement. Recovery is expected to persist over the next three months.

Because of the economic uncertainty investors are more cautious, but despite this fact the real estate market continues to attract significant capital. Experts say this year the real estate investments will remain stable compared to the volumes recorded in 2011 and they even expect a slight annual increase.

Company statistics show that during the second quarter of the year real estate investments have passed the psychological barrier of $ 100 billion and reached 108 billion dollars, which is 24% more than the volume of investments registered during the first three months of the year.

The volume of investments in the first half is almost the same as it was in the first six months during 2011.

Experts predict that by the end of this year the volume of real estate investment globally will reach $ 400 billion.

A famous consulting company recognizes that investment activity is concentrated in the prime market because of the weaker risk. For brave investors, however, secondary markets become more attractive in terms of profitability. Therefore, experts expect investment activity in the secondary markets and investment in second-rate assets to strengthen in the second half of the year along with increased demand for prime real estate assets.

As a major obstacle for recovery in the global property market, the report indicated weak outlook for the global economy and weak growth in developed countries. Largest risk for the property markets is the debt crisis in the euro zone, said the experts.

In the European markets the main investors the those who have cash and investments are concentrated in mature European markets like Germany, France and Scandinavia.

There is a revival in demand for office space for rent worldwide, says the report. This led to a slight decrease in vacancy rates - from 14% in the first half of last year to 13.3% in the first half of this year. The decrease is due to the reduction of vacant office spaces in the Americas and Asia-Pacific region, while in Europe the level of vacant offices remain unchanged.

As for the commercial market, the highest activity is observed in China.

High activity in the market for commercial plots in Asia, is reflected in the markets for industrial areas in the region. Because of deteriorating prospects for the manufacturing sector in Europe markets industrial areas on the continent are under pressure, and potential tenants are expected to remain cautious in the coming months.

The global market for hotels continues its recovery. The report states that the expected slowdown in investment activity in the hospitality segment will continue also in the second half of the year.