Australia and Asia Pacific lead real estate recovery
Australia and the Asia Pacific region are leading the global real estate investment recovery, according to a report released by the auditing and consultancy firm Deloitte.
The report, which looked at top ten issues in the United States commercial real estate market in 2011, found a slow recovery in the US commercial real estate reflected the local markets, but that there were signs that the rental recovery would be quicker than the United States.
Alex Collinson, Deloitte Real Estate partner in Australia, said that unlike the US scenario, Australia has had a shallower and shorter dip with lower vacancies. Real estate investment trusts were going back to basics, said Collinson.
“While not at 2007 levels, transactional activity is returning. ‘Amend and extend’ is how debt is now being treated. Debt maturities have resulted and ‘haves and have nots’ in terms of access to debt,” Collinson said.
As far as the US commercial real estate potential, Deloitte claimed there was scope for inbound investment into the US “if the recovery gathers pace, but the lessons of the previous investment cycle need to be learned”.
Collinson said it was still unclear whether the US real estate market recovery would gather pace.
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