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Investors predict "strong growth" in real estate



Property investment advice may be sought by more institutional investors over the next two to three years, with a survey indicating that returns from real estate assets such as commercial property are expected to improve.

Over half of organisations polled (56 per cent) by JP Morgan Asset Management admitted that they are currently investing or planning to invest in real estate.

The survey indicated that hedge funds are regarded as being the most attractive alternative asset class, while private equity and real estate investment is set to improve over two to three years.

Cross-border commercial property investment has already begun picking up in some regions, according to Jones Lang LaSalle.

Recent research by the firm revealed that total global commercial real estate investment amounted to £86.3 billion for the first half of 2010, compared to £48 billion in the same period of 2009.

Richard Bloxam, head of pan-Europe, Middle East and Africa capital markets at Jones Lang LaSalle, said: "Institutional demand and available debt continue to return to real estate; particularly for the more prime assets."

Posted by Gaby HamertonADNFCR-1678-ID-800089107-ADNFCR
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