NEW YORK, March 21, 2022 (GLOBE NEWSWIRE) — NAI Global President and CEO Jay Olshonsky, FRICS, CCIM, SIOR announced the release of a Global Market Trends & 2022 Forecast Report covering its four core geographic markets. Those markets are comprised of The Americas, Europe, Asia Pacific and the Mid-East & North Africa (MENA).
NAI Global is an international commercial real estate services firm that provides advisory, brokerage and property management in over 300 markets worldwide. Here are some of the highlights from each region.
- Restaurants are recovering now, but we are also seeing new concepts wanting to enter the NYC market because rents have come down from their height. There are brands and companies who were priced out now seeing opportunities to enter the market.
- In New York City, tenants are coming back and signing new leases, but they require flexibility on terms, renewal options, sometimes termination options.
- Companies are trying to figure out how to handle future growth, while confronting the hybrid work scenario. So they require flexibility too.
- Demand for industrial development and existing industrial properties is the hottest sector in Canadian commercial real estate (CRE).
- Medical REITs were among the most active buyers in 2021, looking for product and paying big numbers. Construction costs also increased in 2021. Both of these trends are expected to hold steady in 2022.
- Multifamily transaction volume exceeded $200 billion in 2021 and is expected to exceed that in 2022.
- Despite the pandemic and rising fuel costs, Mexico was almost perfectly positioned for a record spike in demand for industrial real estate.
- The Eurozone experienced 5% GDP growth rate in 2021 and is expected to be 4.3% in 2022 and 2.5% in 2023. The war in Ukraine, however, is likely to impact these forecasts negatively.
- The implications and applications of “Brexit” continue to be an evolving matter, but the economy of the United Kingdom is resilient, and the Organisation for Economic and Cooperative Development (OECD) expects it to hit its pre-COVID levels by early 2022, with a moderate growth expectation of 4.7% predicted in 2022.
- In the U.K., the boom in the life sciences sector is quickly becoming an established trend.
- Demand for office space in Munich and Berlin is greater than in other metropolitan cities in Europe.
- The Asian Development Bank (ADB) revised its economic growth outlook for developing Asian countries, with expectations dipping slightly to 7.0% (GDP) for the final 2021 figure, and 5.3% in 2022.
- In East Asia 5% GDP is forecast, drawing from the People’s Republic of China (PRC) (the region’s largest economy) which is now forecasting 5.3% growth in 2022.
- Morgan Stanley Australia upgraded their 2022 GDP forecast to 4.9% in 2022. The OECD reports New Zealand GDP closed out 2021 at 4.7%, but expects it to slow to 3.9% in 2022.
- South Korea showed clear signs of rapid recovery in 2021 with the economy expanding 4% year-on-year and expected to be about the same in 2022.
- The main challenge in South Korea was the decrease in both CRE supply and transactions overall. However, the decrease in commercial real estate activity was not as rapid as that seen in residential, and it seems ready to bounce back in 2022.
MID-EAST & NORTH AFRICA (MENA)
- In 2019, NAI Global entered the Middle East with new offices in Jeddah, Riyadh (Kingdom of Saudi Arabia) and Dubai (UAE). Despite the complications of the Covid-19 pandemic, the region has enjoyed early successes and landed major clients.
- Last year economic growth for MENA countries was to 4.1% (GDP), and the outlook for 2022 shifted to 4.1%, up from an estimate of 3.7% made in April 2021.
- New regulations have been passed allowing international investors to operate without a local partner. Many internationals are arriving with needs for retail, offices, and logistics spaces – the full offering for commercial real estate.
- Saudi Arabia is building a car-less, zero-carbon smart city known as The Line as part of Neom, the futuristic economic zone and city set in the country’s northwest on the coasts of the Red Sea and Gulf of Aqaba….and is expected to add $48 billion a year to the Kingdom’s GDP by 2030.
To view the entire report and forecast, click here:
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