Commenting on their latest Top Report selection "Real Estate Market Outlook 2006" by Ernst & Young, ResearchWorldwide.com, says, "We have identified 38 global real estate trends from this selected Top Report and believe that they predict many of the trends which will make news headlines in the next 12 months."
Certain of these trends include the further development of REITs, and REIT-look-alike vehicles, which will continue to spread worldwide.
"Last September DTZ produced a report identifying that more than one trillion euros of commercial property in Germany and the United Kingdom is owned by companies whose primary business was unrelated to commercial real estate. With Germany and the United Kingdom on the threshold of creating REIT-type vehicles this will boost the development of REITs worldwide," says ResearchWorldwide.com
While global REITs march onwards, a counter trend of public REITs in the United States going private is intensifying. Certain limitations to growing portfolios, discounted asset values, continuing high running costs of a public REIT, as well as no longer requiring access to public funding are contributing to this privatization trend.
Global financial reporting standards are following the International Financial Reporting Standards (IFPS) format. With increasing cross-border real estate investments, U.S. investors and developers will have to adopt these reporting standards to be compliant with international norms.
Without adequate supporting infrastructure, successful real estate markets cannot flourish. In the United States, and worldwide, infrastructure is antiquated or inadequate. Infrastructure projects worldwide are likely to be the next big growth area and increasing public/private partnerships will be created to develop, acquire and manage infrastructure projects such as toll roads, airports, sports stadiums and bridges according to the Ernst & Young report.
Brazil, Russia, India and China, collectively known as the "BRIC" nations, are likely to enjoy substantial economic growth over the next five years. Real estate development and investment from developed countries, and developing countries, will follow the gravy train on this BRIC track. Interestingly enough, Ernst & Young predict that South Africa will enjoy increased investor attention and they may soon be known as BRICS nations.
"South Africa has headed up both our Worldwide Commercial Real Estate Performance Rankings and Worldwide House Price Performance Indices in recent years," says ResearchWorldwide.com.
The hotel sector is the asset class of choice among many investors in the US and worldwide. In the US, there has been strong demand for hotels resulting in a cap rate compression bringing hotels in line with office and industrial market sectors.
New hospitality market developments are expected in the US cities of Chicago, Phoenix, Miami, San Francisco, Dallas, Los Angeles and Washington D.C. Worldwide, new hotels are being developed, with U.S. hotel groups and other hotel groups expanding throughout Europe, India and China.
The gaming industry in the United States and worldwide is showing phenomenal growth aided by media attention on worldwide poker tournaments and online casinos. The United States, Europe, Caribbean and Asia are seeing casino-related developments blossoming.
"Overall the global real estate industry can look forward to a successful year in 2006 according to these trends produced by Ernst & Young's Global Real Estate Practice. We compliment them in sharing this knowledge thereby enhancing responsible real estate investment worldwide," says ResearchWorldwide.com.
