India's Big Deal
Office space absorption in India's major cities rose at the blistering pace of 46 percent, or 10.2 msf, from April to June 2016. New Delhi and Bangalore accounted for almost 50 percent of the office space, according to CBRE. Despite a muted global economy, India continues to be a preferred outsourcing destination for corporate firms, and its stable economy and government policies consistently attract investors to its commercial real estate markets in its largest cities, CBRE reports.
Commercial Real Estate 2020
Global market predictions are based on multiple fundamental shifts in commercial real estate markets.
- By 2020, investable real estate will grow by more than 55 percent compared to 2012.
- By 2025, emerging markets will generate 60 percent of all global construction projects.
- By 2025, 37 megacities will thrive compared to 23 now, and 12 of these cities will be in emerging countries.
Markets to Watch
Better than expected bright spots in the global economy caused Wells Fargo to boost its international GDP growth to 2.9 percent from 2.8 percent for 2016. Japan made the biggest policy change affecting international markets. Prime Minister Shinzo Abe delayed plans for another
increase in the consumptive tax from 8 percent to 10 percent. Scheduled to take place in April 2017, Abe moved it until November 2019. Prior increases in the consumption tax have been blamed for moving the Japanese economy back into recession. The delay also resulted in speculation that the Abe administration
would deliver a fiscal stimulus plan to augment quantitative and qualitative easing and negative interest rates currently being implemented by the Bank of Japan.