Jim Wilson’s Post

Redefining Horizons: Global Real Estate Dynamics Unveiled - Insights from JLL's February 2024 Highlights The global real estate market, while facing economic challenges, indicates stabilizing demand. Despite tighter monetary conditions and softened labor markets, signs of occupier demand and renewed capital activity emerge. Expected economic growth below historic rates and ongoing volatility project a gradual recovery from H2 2024 into 2025. Global Capital Flows and Interest Rates: Easing interest rates set the stage for recovery, reflecting varied economic conditions. The return of predictability is pivotal for stabilizing valuations and unlocking liquidity. Debt Markets: Debt costs remain elevated but are stabilizing, with early easing observed in the U.S. Despite ongoing challenges, debt markets are liquid, and lenders are gaining confidence. Loan workouts and refinancings will be in focus, with lenders maintaining a sector-focused approach, particularly for core, stable assets. Investment Activity: Global investment volumes declined in Q4 2023 to $166 billion, down 23% YoY, marking the lowest level of direct investment in over a decade. Annual transaction volumes for 2023 totaled $594 billion, a 44% drop compared to 2022. However, renewed momentum emerged in late Q4. Sector Dynamics: The real estate asset class is experiencing a dynamic shift in investment strategies. Growth sectors like industrial, living, and alternative sectors are favored, while offices face pressure. Diversification remains a top priority in global, diversified portfolios. Pricing Dynamics: Bid-ask spreads persist in commercial real estate markets, influenced by elevated interest rates and capital costs. Despite uncertainty, a growing number of bidders re-entered the market since late 2022, and price discovery continues globally. Property Sectors: Offices: Signs of stabilization emerge as demand rises in Q4, with leasing volumes increasing, but the global vacancy rate rises to a new high of 16.2%. Logistics: Normalization in Q4 with positive signals, including rising leasing volumes Living: Emerging living markets shine brightest, with a rise in renting and a fall in home purchasing. Living investment reaches its highest share of total real estate investment in EMEA and Asia Pacific in 2023. Hotels & Hospitality: Urban hotel performance accelerates, with global hotel revenue per available room (RevPAR) remaining elevated, especially in EMEA and Asia Pacific. In summary, the global real estate market is navigating challenges but shows signs of recovery, with shifting investment strategies, a focus on growth sectors, and varying dynamics across property sectors. Source: https://lnkd.in/dS6Mn9qn #properti #jll #jllcapitalmarkets #realestate #realestatenews #news #realestatemarket #realestatedevelopment #immobilien #immobilienwirtschaft #immobilienmarkt #immobilienbranche #globalrealestate #innovation #future

As interest rates in the UK begin to decline, many businesses are preparing to ramp up investment. However, uncertainty remains, with firms staying cautious until borrowing costs stabilise. Several sectors, including real estate, utilities, consumer discretionary, technology, financials, and consumer staples, are positioned to benefit from this shift. Lower interest rates create a more favourable environment by increasing borrowing capacity, reducing the cost of capital, and stimulating consumer spending. This period of hesitation underscores a critical point: operational efficiency is key to staying competitive and profitable, especially as businesses wait for the right time to make bold financial moves. With Office XO, your business can confidently navigate these changes and seize new opportunities. #interestrates #businessinvestment #economicgrowth #realestate

The latest Capital 500 survey shows that London businesses experienced an improvement in cash flow in the first quarter of 2024, alongside a growing domestic sales demand. Read the full article from the London Chamber of Commerce and Industry, here ⤵️ https://lnkd.in/eVWCFea7 #BusinessNews #London #ProfessionalServices

Positive Monday morning reading 📈 It's no secret that the construction industry and the #economy as a whole have been struggling. 🏗 However, speaking with clients over the last couple of weeks, there seems to be a shift to a more #positive outlook. 🎉 This morning's story in The Times is further evidence that we have reached a "turning point" and the UK has emerged from a recession. 🗞 I believe this will feed #confidence back into the #constructionindustry and the remainder of 2024 will be more upbeat 🎆 https://lnkd.in/eHvT5372

Planning business activity in the immediate future is likely to be challenging because of higher-than-usual inflation and interest rates. Business owners can-expect lower than usual growth for at least the next financial year, with the outlook in the next two years being particularly poor for business investment, concurrent with falls in both housing investment and export growth. Click below to read more. https://lnkd.in/gaC7UsT6

Navigating the Tides: Understanding the Market Recovery Factors Underpinning the Rebound From government interventions to international investments, the property market recovery is a complex interplay of factors. The Help to Buy scheme and stamp duty reliefs have stimulated demand, while global capital inflows have diversified and increased the investment pool. As the economy strengthens, job security improves, lending norms relax, and a renewed buyer confidence takes hold. Trends and Forecasts in the UK Property Market Current trends signal a buyer's market with an influx of available options. The resurgence of first-time buyers, relocation trends driven by remote working, and the green revolution’s impact on housing preferences are reshaping demand profiles. Forecasts suggest that property values will steadily rise, highlighting the urgency for informed and timely investments.

Planning business activity in the immediate future is likely to be challenging because of higher-than-usual inflation and interest rates. Business owners can-expect lower than usual growth for at least the next financial year, with the outlook in the next two years being particularly poor for business investment, concurrent with falls in both housing investment and export growth. Click below to read more. https://lnkd.in/gyUHdsDJ

Navigating the Tides: Understanding the Market Recovery Factors Underpinning the Rebound From government interventions to international investments, the property market recovery is a complex interplay of factors. The Help to Buy scheme and stamp duty reliefs have stimulated demand, while global capital inflows have diversified and increased the investment pool. As the economy strengthens, job security improves, lending norms relax, and a renewed buyer confidence takes hold. Trends and Forecasts in the UK Property Market Current trends signal a buyer's market with an influx of available options. The resurgence of first-time buyers, relocation trends driven by remote working, and the green revolution’s impact on housing preferences are reshaping demand profiles. Forecasts suggest that property values will steadily rise, highlighting the urgency for informed and timely investments. What are your thoughts on property values?   #UKProperty #UKproperttastic #finance

📈High inflation rates and other cost of living pressures in recent times are keeping confidence down among SMEs. Taking steps to keep a lid on fixed costs can help you maintain profits when margins are under pressure. Having a full understanding of your cost base will reveal where you could afford to cut back. You can also look at ways to improve efficiency, for instance by encouraging collaboration across teams. Finding ways to reduce waste, for example by using tech to eliminate errors, and disciplined financial planning can also help. 🍍Here we explore 6️⃣ ways to boost efficiency for your business: https://lnkd.in/edw9T9mi #financialplanning #financialplanners #york #yorkbusiness #yorkshire #yorkshirebusiness

In light of recent economic shifts, Canadian businesses are navigating a landscape marked by rising interest rates and an increased cost of capital. A recent article from RSM explores the strategies firms are employing to thrive in this challenging environment and adapting to these economic shifts. As we move forward, it's crucial for organizations to stay agile and proactive in their approaches to financing and growth. Read the full article for deeper insights.