Buoyant outlook on returns in real estate

Real estate investors are expected to receive attractive returns this year from leasing and development projects in emerging markets including the mainland, according to a global property investor.

LaSalle Investment Management, a member of the Jones Lang LaSalle group, released its 2011 investment strategy report yesterday and forecast that deals in the global real estate market will continue to pick up.

It said the global economic outlook had improved in the past two months. But the economic recovery was likely to be long and slow in the euro zone, Japan, Britain and the United States.

At the same time, there will be much higher levels of leasing demand in large developing markets such as China, India and Brazil.

'In the low-growth countries, we expect investment performance will get a boost from low interest rates and a rising flow of debt and equity capital despite the weak recovery,' said Jacques Gordon, global strategist of the Chicago-based company.

'Investment performance in the rapidly growing countries will be volatile due to the waves of liquidity that wash over less mature markets.'