NEW YORK, March 21, 2022 (GLOBE NEWSWIRE) — Chairman and CEO of NAI Global Jay Olshonsky, FRICS, CCIM and SIOR announced the publication of a report on global market trends and forecasts for 2022 covering its four main geographic markets. These markets include the Americas, Europe, Asia-Pacific, and the Middle East and North Africa (MENA).
NAI Global is an international commercial real estate services company that provides real estate advisory, brokerage and management services in more than 300 markets worldwide. Here are some of the highlights from each region.
AMERICAS
- Restaurants are recovering now, but we are also seeing new concepts wanting to enter the New York market as rents have come down from their height. There are brands and companies that have been priced out and are now seeing opportunities to enter the market.
- In New York, tenants come back and sign new leases, but they need flexibility on terms, renewal options, sometimes termination options.
- Companies are trying to figure out how to handle future growth, while dealing with the hybrid working scenario. So they also need flexibility.
- 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, researching products and paying big numbers. Construction costs also increased in 2021. Both of these trends are expected to continue in 2022.
- The volume of multi-family transactions exceeded $200 billion in 2021 and is expected to surpass that of 2022.
- Despite the pandemic and rising fuel prices, Mexico was almost perfectly positioned for a record increase in demand for industrial real estate.
EUROPE
- The Eurozone experienced a GDP growth rate of 5% in 2021 and is expected to reach 4.3% in 2022 and 2.5% in 2023. The war in Ukraine, however, is expected to have a negative impact on these forecasts.
- The implications and applications of ‘Brexit’ continue to evolve, but the UK economy is resilient, and the Organization for Economic and Co-operative Development (OECD) expects it to reach pre- COVID by early 2022, with a moderate growth expectation of 4.7% expected in 2022.
- In the UK, the boom in the life sciences sector is quickly becoming an established trend.
- The demand for office space in Munich and Berlin is higher than in other European metropolises.
ASIA PACIFIC
- The Asian Development Bank (AfDB) has revised its economic growth outlook for developing Asia, with expectations down slightly to 7.0% (GDP) for the final figure in 2021 and 5.3% in 2022 .
- In East Asia, GDP of 5% is forecast, coming from the People’s Republic of China (PRC) (the region’s largest economy) which now forecasts growth of 5.3% in 2022.
- Morgan Stanley Australia raised its 2022 GDP forecast to 4.9% in 2022. The OECD reports that New Zealand’s GDP ended 2021 at 4.7%, but expects it to slow to 3.9% in 2022.
- South Korea has shown clear signs of a rapid recovery in 2021 with economic growth of 4% year-on-year and is expected to be about the same in 2022.
- The main challenge in South Korea has been the decrease in CRE supply and transactions in general. However, the decline in activity in commercial real estate has not been as rapid as that seen in residential, and it looks set to rebound in 2022.
MIDDLE EAST AND 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 saw early successes and landed major customers.
- Last year, the economic growth of MENA countries was 4.1% (GDP) and the outlook for 2022 has increased to 4.1%, compared to an estimate of 3.7% made in April 2021.
- New regulations have been adopted allowing international investors to operate without a local partner. Many internationals arrive with needs for commercial space, offices and logistics – the complete offer for commercial real estate.
- Saudi Arabia is building a car-free and carbon-free smart city known as The Line as part of Neom, the futuristic economic zone and city located in the northwest of the country on the coasts of the Red Sea and the Gulf of Aqaba…. add $48 billion per year to the Kingdom’s GDP by 2030.
To see the full report and forecast, click here:
https://www.dropbox.com/s/gg2g61t4rfur6uz/NAI%20E-BOOK%202022_FINAL_1.pdf?dl=0
For more information about NAI Global, visit www.naiglobal.com/
Press contacts:
Gary Marsh, Marsh Marketing 415.999.3793 or gary@marshmarketing.com
Lindsay Fierro, NAI Global 212.405.2474 or news@naiglobal.com
