New Delhi, March 29 (IANS) The global real estate market is pegged to cross $1 trillion in 2016 – 6 percent higher than in 2015 – and India’s property sector is likely to benefit out of it too, a survey said on Tuesday.
The Global Investor Intentions Survey 2016 report, released by real estate consulting firm CBRE, said investors are likely to remain expansionary in 2016, with more than $1 trillion of planned expenditures anticipated to enter global real estate markets.
“We believe that 2016 will be another active year for the global real estate investment market, with capital flows 6 percent higher than in 2015. There is more than $1 trillion of capital targeting real estate in 2016,” said CBRE’s global president, capital markets, Chris Ludeman.
India’s real estate is also likely to get some benefit, albeit a small share, of the global real estate investment funds, the report added.
“The year 2016 promises to be a good one for the industry and it is expected that India’s real estate sector will get some benefit, albeit a small share, of the global real estate investment funds,” said CBRE South Asia chairman Anshuman Magazine.
According to the survey, London, Los Angeles and Sydney have emerged as the most sought after real estate destinations for 2016.
The survey, conducted between January and early February this year, asked investors how much capital they would deploy in real estate purchases this year and a majority (82 percent) indicated that their buying activity will increase, or remain the same, compared to 2015.
The survey also captured negative sentiments arising from volatility in China’s stock market at the time, although 2016 is expected to be a risk-free year.
“Investment strategies are shifting amid concerns about the health of the global economy. Not surprisingly, 2016 looks likely to be a ‘risk-off’ year, with investors reporting they are more focused on core assets and less likely to seek secondary, value-add and alternative opportunities,” said Ludeman.
North America is the most popular destination for investment (48 percent), ahead of Western Europe (26 percent), the survey added.
Japan approves record $852 billion budget
Tokyo, March 29 (IANS) Japan’s parliament on Tuesday approved a record $852 billion budget for the next fiscal year which begins on April 1.
The upper house approved the budget, which is 0.39 percent higher than the existing budget, with majority support from the ruling Liberal Democratic Party, after the lower house approved it on March 1, Efe news reported.
The amount allocated to specific policies and budget items, excluding financing costs, is $644 billion.
Over 40 percent of this, $282 billion, or 1.4 percent more than last year, will be used to cover social security costs, an increase attributed to the country’s aging population.
In a bid to increase Japan’s diplomatic and military clout, Prime Minister Shinzo Abe’s administration also increased defence items and development aid.
Despite the record budget, the government has aimed to improve its fiscal health by taking advantage of what it hopes will be its highest revenues in a quarter of a century, around $498 billion, according to projections for the upcoming fiscal year.