MONTHLY NEWSLET TER

MONTHLYNEWSLET TERJUNE 2021

Global Economic Outlook 2021:The danger of an inflation resurgence by Shan Saeed Inflation has become a hot topic globally since the amount of stimulus and printing money that has gone into the financial system impacts the market. FED has been wrongly targeting the 2% inflation target globally for many years and could not succeed. Finally, inflation is expected to rise and showing its head. The question from many investors.

Why FED got it all wrong in the last many years?

Why FED has been behind the curve in many circumstances?

In my opinion, FED did not have a firm stance on the inflation target or could be lack of fortitude. There could be two reasons for that

It is an enduring parlour game because nobody can answer or deliver economic outcomes in advance. It is a long, tedious process of getting things in order economically.

SHAN SAEEDChief Economist at Juwai IQI

+60 10-893 1107 [email protected]

Visit www.iqiglobal.com now for more information!

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FED has made it complex fit itself as to how to target the 2% inflation. FED should have been focusing on growth outlook and delivering the outcome effectively. Unfortunately, FED did not pay any heed to that point.

It is fundamental and worrisome. FED works under much uncertainty, and there could be an element of misjudgment. FED can make many errors as markets look very shaky and investors nervous.

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SHAN SAEEDChief Economist at Juwai IQI



– Upsurge is possible

China takes the lead

– Recovery Becomes The Key

Oil market outlook

Geopolitical risk, economies opening up and depreciating dollar are the key variables to make oil prices outlook heading north. $70-77/barrel looks inevitable in H2 as demand is coming back in the market with supply lagging.

China is all set to introduce eCNY to the market, which will bypass the dollar in major transaction details. This is quite significant for the market as it would become a real challenge to the US dollar hegemony. Markets are ready to accept the introduction of the Digital Yuan, which will confidence and affirm China's role in the global economy.

With MCO 3 started, consumption is picking up, and recovery becomes essential for the growth trajectory. GDP figures may not as important as it looks. Nevertheless, at least recovery and stability have become important shortly. Malaysia can make a turnaround provided macroeconomic stability is intact.

Malaysian economicoutlook

Digital Yuan

Juwai IQI Insight

DAVE PLATTERGlobal PR and Communications Directors at Juwai IQI

+61 432 814 888 [email protected]

We Commit to Net Zero Emissions


Kashif Ansari, Juwai IQI's Group Co-Founder and CEO, said this month that the Asian real estate technology company has committed to achieving net-zero emissions and carbon-neutral certification from 2030.

The company will accomplish this goal by reducing its emissions impact and then offsetting any remaining carbon footprint through scientifically valid initiatives that remove carbon from the atmosphere.

"We have two motivations for targeting net-zero," said Ansari, "to reduce our emissions and to build awareness and momentum across Asia for addressing climate change. With its rapid economic growth and young population, Asia has the most to gain from taking swift action to beat climate change.

We will use our journey to net-zero to create an opportunity to spread awareness and help those who also want to reduce their climate impacts but do not have the information or support they need. That is why we are nesting our net-zero initiative within our Juwai IQI Cares program.

We have already begun mapping and reducing our greenhouse gas emissions. Some areas that need work are business travel, staff commuting, energy use in our facilities and energy consumption by our remote team members."

60%Asia has....

of the world’s population (4.3 billion people)

2 billionMore than

living in urban area

16 of the world’s 28 mega-cities

3 of the world’s 5 largest economies

Irhamy International Valuation

IRHAMY AHMADFounder and Managing Director of Irhamy International Valuers



Are Real Estate Sales Returning toPre-Pandemic Level?I recently attended a meeting between the Malaysian Association of Professional Estate Agents and Consultants and one major banking group of Malaysia on the state of the property market. Various issues were discussed, and the following points raised during the meeting are of our interest.

First, it appears that there is a worsening affordability issue for the first-time buyers within the B40/M40 group for house purchase. Although this has always been a well-discussed issue, the current pandemic seems to have made it worse. The net effect is a bottleneck demand for medium to low-cost housing as the house income plunges.

Second, the middle class appears to have weathered the pandemic storm better in 2021. As the property prices went south in 2020, the demand goes north as the price and income equilibrium match. The purchase rate has returned to the pre-pandemic levels, the thirst for real estate has returned in most urban areas.

Third, the cost of borrowing (and the return yield) is the lowest in recent times, coupled with the inability to travel (and spending money) are fueling the demand for real estate as it has become a currency. The following are the analyzed data of selected areas favoured by the middle-class investors in Kuala Lumpur:

Our view is simply that the demand is tracking nicely in the property market. It will get firmer by the end of 2021.

ResidentialCoreLogic recorded that Australia's home value continues to rise 1.8% during April, with the monthly pace of capital gains easing from a 32-year high in March (2.8%). Compared to last September, we are 10.2% higher and rising at 6.8% over the past three months.

LILY CHONGDirector at IQI WA


AUSTRALIA

Visit www.iqiglobal.com now for more information!Source: CoreLogic / The Urban Developer

Perth feels like it is back to the early-mid 2000s, where the property market is booming. We seem to be riding the bull through a vital recovery phase. Local buyers are active, sellers are gaining on the equity in their properties, and investors are confident in the marketplace. REIWA has also updated their statistic that Perth's median house price is now above $500,000 for the first time since December 2018, currently sitting at $508,000 in April.

As for Sydney, there was a trend that First Home Buyers had been more active in the market for the last 12 months when there was less competition from the property investors. Low interest rates and a handful of government assistance program encouraged first home buyers to enter the property market. In the most recent months, with investors stepping their foot back into the market, we can see that the property prices have been increasing, putting on much pressure for first-time homebuyers on what they can now afford.

Melbourne's residential property prices are still surging despite the slowdown on international students and inbound migrations. The current median prices are $736,478 for houses and $593,121 for units. Compared to the same time a year ago, the number of settled transactions over the past three months is 38% higher. With listing numbers 2% higher than a year ago, we can suggest that demand is outpacing supply, contributing to the upward pressure on property prices.

Visit www.iqiglobal.com now for more information!Source: rebgv.org/market-watch/monthly-market-report/april-2021.html

Toronto

Metro Vancouver

YOUSAF IQBALDirector at IQI Canada

+(1)647 669 9222 [email protected]

CANADA

GTA REALTORS® reported 13,663 sales in April 2021 – a 12.7% decrease compared to March 2021, but more than quadruple the number of sales in April 2020. Compared to the average for April 2010 to April 2019, sales were up by 36.6%.

New listings fell by 8.4% compared to March 2021 but tripled the number of new listings reported in April 2020. Compared to the new listings average for April 2010 to April 2019, new listings were up by 18.3%.

The MLS® Home Price Index Composite Benchmark was up by 17.8% year-over-year. The average selling price of $1,090,992 was up by 33% compared to April 2020 but was flat relative to March 2021.

The MLS® Home Price Index composite benchmark price for all residential properties is currently $1,152,600, a 12% increase over April 2020 and a 2.6% increase compared to March 2021.

REBGV reports that residential home sales in the region totalled 4,908 in April 2021, a 342.6% increase from the 1,109 sales in April 2020 and a 14% decrease from the 5,708 homes sold in March 2021.

The total number of homes currently listed for sale is 10,245, a 9.1% increase compared to April 2020 (9,389) and a 12% increase compared to March 2021 (9,145).

OMER ALI KHANDirector at IQI Dubai


DUBAI

Visit www.iqiglobal.com now for more information!Source: Extracts Khaleej Times

Dubai's records 27% surge inQ1 property dealsDh22.9 billion made in the first quarter

Property deals valued at about

Dubai recorded the second-highest number of real estate transactions since February 2017 in the first quarter, with 6,590 deals valued at about Dh22.9 billion, growth in number by 43 per cent and value by 40 per cent year-on-year.

The real estate bulletin issued by Dubai Land Department, 'Real Estate Updates,' March 2021, showed that real estate transactions in Q1 2021 achieved significant growth of 27 per cent and 47 per cent compared to Q1 2020 and Q1 2019, respectively.

Highlighting the continued attractiveness to new investors, the bulletin said 5,683 new investors entered the market in Q1 2021, representing 64 per cent of the total number of investors during the same period.

The value of real estate brokerage commissions achieved by active real estate brokers in the real estate market reached Dh392 million in Q1 2021, while 143,374 Ejari contracts were recorded in Q1 2021, 57 per cent of which were new contracts and 43% were renewed contracts.

The top five areas for investor attractiveness for villa sales in Q1 were Hadaeq Sheikh Mohammed bin Rashid, Wadi Al Safa 5, Wadi Al Safa 7, Nad Al Sheba 1, and Al Thanyah Fourth. In apartment sales, Dubai Marina, Palm Jumeirah, Business Bay, Burj Khalifa, and Al Merkadh topped the list in Q1 2021, said the bulletin. There has been an influx of many Europeans who came to escape lockdown, take advantage of or relax in visa rules, and extend their stays, with many now looking to buy holiday homes or become residents themselves.

The number of transactions recorded by British, Italian, French, and German buyers increased by 168% since Q1 2020, with luxury villas and apartments on the Palm and other coastal areas being exceptionally high. Other key findings included residential sales - an 18 per cent price increase for villa communities in Dubai, owing to increased demand. In addition, there was a 167 per cent increase in the number of registered buyers for villas and townhouses, while the number of actual transactions increased by 72 per cent in the first quarter year on year.

Visit www.iqiglobal.com now for more information!Sources: JPPEH

NICHOLAS TANProperty Investment Strategist at IQI


MALAYSIA

ResidentialWP Kuala Lumpur recorded the highest number of new launches by state by state, capturing nearly 21.8% (10,295 units) of the national total, with sales performance at 18.6%. Selangor recorded the second-highest number (7,330 units, 15.5% share), with sales performance at 39.1%. Johor came third (5,913 units, 12.5% share) with sales performance at 29.3%.

By property type, terraced houses dominated the new launches. Single storey (9,409 units) and 2-3 storey (10,944 units) together contributed 43.1% of the total units, followed by condominium/apartment units at 39.7% share (18,717 units).

Serviced apartment segment recorded 3,869 transactions worth RM2.54 billion, formed 19.1% of the commercial property transactions volume and 13.0% of the value. Market performance recorded a decrease of 7.6% in volume and 11.7% in value of transactions (2019: 4,189 transactions worth RM2.88 billion). By state, WP Kuala Lumpur and Selangor contributed a higher national market volume to the national total, each with 42.0% (1,625 transactions) and 30.7% (1,189 transactions) market share.

In WP Kuala Lumpur, the residential rental was generally stable with marginal growth for terraced houses in selective locations. In Selangor, the rental market portrayed mixed movements. The average gross yields for terraced houses and apartments/condominiums in the Klang Valley area ranged from 2.9% to 3.1% and 4.0% to 4.4%. In Johor, the rental market was generally stable, with average gross yields at 3.6% for terraced houses and 4.6% for apartments/condominiums. Up north, Pulau Pinang rental market was generally stable for terraced houses whilst apartments/condominium charted a downward trend.

Prices of serviced apartments showed a stable trend across the states, with a downward trend in specific locations. WP Kuala Lumpur prices of secondary market serviced apartments were generally downward as more newly completed units came onto the market. Serviced apartment priced at above RM1 million, such as Solaris Dutamas and The Troika KLCC, dropped by 5.4% and 5.0%, respectively. The rental market was generally stable in WP Kuala Lumpur, whilst Selangor portrayed mixed movements. The average gross rental yield across the states was in the range of 2.3% to 5.3%.

On the demand side, the loan application for residential property purchase increased by 2.2% in 2020, while the total loan approval decreased by 17.3%. For the non-residential property, the loan application amount and total loan approval decreased by 30.0% and 37.3%, respectively. The ratio of loans approvals against loans applications for the purchase of residential property and non-residential property stood at 35.0% and 33.6% in 2020 versus 43.2% and 37.5% in 2019.

EMMANUEL ANDREW VENTURINAVice President at IQI Philippines

+632 878 0755 [email protected]

PHILIPPINES

Colliers saw the highest transaction level in the first quarter since the lockdown began last year. However, the surge in cases in Q1 2021 halted the gains. In our view, Metro Manila's office market demand recovery hinges on the pace of the Covid-19 vaccination program. Increasing vaccinations should reduce the number of Covid cases and bolster confidence for companies to return to the office. Colliers encourages tenants to:

Assess their revival and growth prospects to take advantage of tenant-favourable office market (e.g. blend-and-extend.)

Consider short-term lease options (e.g. 1-to 2-year terms or flexible workspace) to tide over space needs in an uncertain period.

Implement the hub-and-spoke strategy to tap new labour sources and reduce real estate costs.

Employ flight-to-value and/or flight-to-quality strategies.

Green shoots of recovery for Philippine residential property

Pandemic-induced disruptions have altered the Philippine economy and the property sector. Weak office leasing demand contributed to subdued residential demand, resulting in a further price and rental correction.Colliers expects a recovery in new supply in 2021, as developers are already exploring the viability of new project launches in critical areas across Metro Manila.

The Government's vaccination program provides a glimmer of hope, and economic recovery should also provide a much-needed boost to a local investor and end-user demand. In our view, developers should further test demand in the luxury market and become more innovative with promotions and incentives.

Office leasing opportunities amid Covid surge


E-commerce, outsourcing and data centres to drive demand post-COVID

Economic rebound, vaccination to help lift residential demand

Physical stores to post higher vacancy as consumers, retailers go into wait-and-see modeNo new retail space was completed in Q1 2021. Colliers expects lockdowns in Metro Manila and subdued consumer confidence to push retail vacancy to 16%, the highest since 2002. We expect demand slowdown and closure of physical stores to keep rents on a downward trend before a slow recovery begins by 2023. Colliers recommends landlords to:

Meanwhile, we encourage retailers to maximize the use of technology and explore the roll-out of e-wallets, messaging applications, and self-checkout schemes to boost demand across Metro Manila.

Be more flexible to tenant requests for concessions

Develop alternative dining strategies and repurpose vacant retail space

Visit www.iqiglobal.com now for more information!Source: bangkokpost.com

SOMSAK CHUTISILPDirector at IQI Thailand


THAILAND

ResidentialThe most significant increase in housing supply in Bangkok came from units priced between 1-3 million baht.

This pricing bracket saw supply rise by 14% in Q1 of 2021 compared with Q4 last year, followed by a rise of 10% for units priced between 3-5 million baht and 8% for those priced between 5-10 million.

DDproperty.com reported the number of people interested in units priced between 1-3 million baht had the lowest increase since it began tallying, only 14% Q-O-Q in Q1 of 2021.

Those wanting to buy units priced 3-5 million baht saw a quarterly increase of 23%, while units between 5-10 million spiked by 27%. Those wanting units costing 10 million baht and above reported a quarterly surge of 34%.

Demand for office space in Bangkok in the first quarter remained strong, driven by e-commerce, tech and logistics businesses. Also came from financial institutions, online travel agents, retailers and wholesalers of electronics products.

At the end of the first quarter, Bangkok office occupancy rose by 0.2 percentage points to 93.8%. The highest demand was seen in the central business district (CBD) of Sukhumvit, where occupancy is 94.5%, down from the fourth quarter of 2020.

During the same period, Bangkok office supply grew to a total of 9.098 million sq m, up by 0.2 percentage points from 9.078 million sq m at the end of last year.

The cost to rent a grade-A space in the CBD dropped by 0.5% to 1,108 baht from 1,103 baht. However, the average office rent in Bangkok's fringe locations rose marginally as many tenants relocated from the CBD.

Office

RetailE-commerce penetration in the retail sector could triple in the next few years as the pandemic pushes brands to go online and cross-border sales increase.

The pandemic has affected Thailand's GDP and consumer confidence at a scale similar to past major financial crises. However, e-commerce is likely to be an industry that will thrive.

Thai consumers buy more daily use and essentials products online, adding that purchase frequency is increasing despite the smaller size per order. Consumers will be exposed to products or services they have not yet experienced or those they never thought they needed before.

One future e-commerce feature is sharing commerce in which buyers who are interested in the same products buy items in bulk, leading to discounts.

Will property prices crash in Indiadue to the Coronavirus outbreak?

PANKAZ JAIINCEO at IQI India

+9717497378 [email protected]

INDIA

Annual property price growth:City-wise break-up

Office

Retail

Residential

Operators would now focus on customized solutions, creative partnerships with landlords and new arenas for sustenance and growth.

Occupiers would look at 're-optimizing portfolios and revising location strategies and display an augmented preference towards agility.

Landlords would 'hotelise' office spaces, undertake creative partnerships with operators and optimize the share of flexible spaces within their portfolios with an eye on office space valuations.

City

Ahmedabad

Bangalore

Chennai

Hyderabad

Kolkata

Mumbai Metropolitan Region

NCR

Pune

National Average

3234

5450

5275

5713

4208

9474

4327

576

6234

5

3

3

5

1

No Change

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3

Annual growth in %The average price as of March 31, 2021

(in Rs per sq ft)


Interestingly, no prime market showed any downwards movement in prices during the October-December period of 2020, despite the severe pressure caused by the pandemic. However, with a slight pick-up in home sales during the January-March period of 2021, India's eight prime housing markets have shown almost flat price growth.

In India, interest towards the flexible space segment continues to rise in 2021, as 'core + flex' strategies would be at the forefront for all office stakeholders. In this report, we present CBRE's take on how the flexible space segment has evolved so far post the COVID-19 outbreak, along with the perspective of all three stakeholders – operators, occupiers and landlords.

Retail assets recorded private equity investments of 484 million dollars during January to March (Q1 2021), up 120 per cent from 220 million dollars in Q1 2020. However, the jump can be attributed to a single large deal (equity) in Bengaluru between Blackstone and Prestige that involved multiple retail, office and hospitality assets as a part of the more significant transaction.

Since 2011, the retail space has attracted 3.2 billion equity investments with 26 deals. The retail sector has been the worst-affected segment in the Covid-19 crisis. The pandemic induced lockdown had forced several malls to shut down, affecting their business adversely temporarily.

We believe that the flexible space segment in India is amid a constant evolution – with its long-term fundamentals likely to remain resilient. The long-term drivers of flexible space demand are likely to be intact, with smaller occupiers continuing to seek cost-effective, fully furnished spaces and large multinationals looking to build more agility into their office portfolios.

Source: www.cbre.co.in, www.knightfrank.co.in

Thanks to the Mongolian Government's initiative to combat Covid-19 related economic downturn through an expanded lending program, we see substantial recovery in the construction sector. On the demand side, newly constructed apartment numbers increased by 23%. Economists predict the housing market should remain strong due to increasing demand, especially standard apartments, which nearly accounts for 80% of the real estate market. In 2021, the primary housing market continues to be competitive for buyers resulting in 12.9% higher home prices in the first quarter.

AMARTUVSHIN ARIUNBOLDHead Of Country Juwai IQI Mongolia

+976 99998333 [email protected]

MONGOLIA


After the pandemic induced decrease in demand last year, office market price is moving upwards for the 3rd straight month as of Q1. Business activity is projected to recover sharply in the coming months as Mongolia is expected to vaccinate 90 per cent of its population by June of 2021. DCG Mongolia's market analysts predict that office prices will reach 4 million tugriks/1,403 usd/ per square meter by the end of the year.

New apartment sales surge 23% in Q1

Office market upward trend continues

Residential apartments continue to set record-high price where the average price of each sector being:

Luxury apartments: $6,900 / m2

Grade A apartments: $2,600/ m2

Grade B apartments: $1550/ m2

Grade C apartments: $950/ m2

NGUYEN NGOC THIEN ANSales Director at IQI Vietnam


VIETNAM

Commercial


Residential

This is mainly due to the inflation in the lifestyle of investors and buyers where more and more of them looking for higher quality projects, especially in terms of interior and management company. We see a trend of Branded Management being welcomed to the market, signatures being: Hyatt Regency, J.W Marriott and Ritz-Carlton.

The average price of residential are forecasted to continue to increase on average of 4% towards the end of 2021 and can be up to 7% for specific extremely luxury projects.

Investors with a record hoard of money to finance distressed commercial real estate find themselves in a tough spot: There is nowhere to spend it.

The cash piles may increase even more. Almost 30% of institutional investors are targeting distressed and opportunistic commercial real estate

Investors brought out their playbooks from the 2008 financial crisis when property loans traded for pennies on the dollar. Nevertheless, instead of forcing borrowers to pay up or refinance at onerous terms, lenders offered modifications and maturity extensions -- lifelines to await the recovery. Delinquencies declined, and property prices held up.

Now, troubled properties are in recovery mode as vaccines liberate people to travel, swarm shopping centres and return to offices. Consumer spending is forecast to grow 6.1% in 2021.

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RAYMOND KHOOVice President at OrangeTee and Tie

+65 9067 6151 [email protected]

SINGAPORE

The overall price index for private residential properties rose by 3.3 per cent in the first quarter of 2021, higher than the 2.1 per cent increase in the fourth quarter of 2020, data from the Urban Redevelopment Authority (URA) showed. This is the fourth consecutive price increase and the steepest quarterly rise since Q2 2018 (3.4 per cent).

The price increase in Q1 2021 was mainly driven by non-landed homes in the Rest of the Central Region (RCR), which rose by 6.1 per cent quarter-on-quarter (q-o-q). In contrast, the price increment was less significant for the Outside of the Central Region (OCR) at 1.1 per cent while prices rose by 0.5 per cent in the Core Central Region (CCR). Prices of non-landed homes in RCR and OCR reached their record highs last quarter.

According to the quarterly statistics released by the Urban Redevelopment Authority (URA), 8,100 private homes excluding EC were sold in Q1 2021, 16.9 per cent higher than the 6,929 units transacted in the preceding quarter.

Foreign buyers seem to be coming back to Singapore. Last quarter, 281 non-landed homes (excluding EC) were bought by non-permanent residents, higher than the 199 units transacted in Q4 2020. This is also the highest volume inked since Q4 2019, when 284 units were sold then. In terms of proportion, the percentage of non-landed homes bought by non-PRs rose to 4.1 per cent in Q1 2021, from 3.3 per cent in Q4 2020 and 3.6 per cent in Q3 2020.

Mainland Chinese (Non-PRs and PRs) remained as the top foreign buyer. They purchased 339 non-landed homes in Q1 2021. This is followed by buyers from Malaysia (198 units) and India (170 units). These numbers are expected to be higher as 398 units are still pending reclassification when caveats are being lodged and are currently stated as Foreign.


Residential

Phnom Penh:

CHANDY MANNHead of Country at IQI Cambodia

+(855) 88 841 8741 [email protected]

CAMBODIA


Cambodia will soon export oil tointernational markets

CommercialThe director-general of the General Department of Petroleum has confirmed that a private company, the developer of Block A wells, will soon export oil to international markets, while the company is currently preparing a form to apply for the principles of exports.

Mr Chiep Sour, Director General of the General Department of Petroleum, Ministry of Mines and Energy, told reporters on May 7, 2021, that the company is currently producing oil on five wells. Typically, for daily production, the company performs pumping oil below 2,000 or 2,000 barrels per day.

He said that the company is preparing a form to apply for guidelines for exporting oil to sell in the international market. The company is working with buyers. He expects the export of oil. International sales will soon be possible, as, in the past four months, the company has received hundreds of thousands of barrels of crude oil, a size suitable for export.

He said that for the obligation to implement this project, the Royal Government would observe the various conditions in the agreement that the company must fulfil; if the company does not meet any of the conditions, Cambodia will abide by the agreement between the agreements Government and the company.

Head of Country at IQI TurkeyBERRAK OZOLTU

+90 531 704 57 99 [email protected]

TURKEY


The real estate sector, which is one of the building blocks of the economy in Turkey, seems to show its growth in 2020 also in 2021. The sector grew by 11,4% in 2020 compared to the previous year in residential areas. This momentum is expected to continue at a similar rate in 2021.

ResidentialHouse sales in Turkey increased by 124% in April compared to the same month of the previous year and became 95 thousand 863. Istanbul had the highest share in house sales with 19 thousand 260 house sales with 20.1%.

Considering that the total housing sales in 2020 were 1,499,316, approximately 41,000 were made to foreigners. We see that this rate has increased by 8 per cent compared to the previous period. In April, it was observed that 7.53% (7.54% on average for the last six months) of the sales realized within the scope of branded housing projects were made to foreign investors, which shows that foreign investors are continuing to invest in Turkey increasingly even though the pandemic period.

OfficeFollowing the COVID-19 outbreak, uncertainty prevailed in the office market.

Due to the pandemic, a remote working model is still preferred by many companies—pre-COVID-19 period. Compared to, within the scope of the measures taken, the average staff density in offices is around 25%.

While the existing grade A office supply in Istanbul remained at 5.6 million sq m GLA as of 2020 year-end, there is circa 1.8 million sq m office supply under construction, and it is expected that the total grade A office supply will outpace 7.4 million sq m GLA by the end of 2023.

As of 2020 year-end, the prime rent for office remained stable at the level of USD 25 per sq m/month. Besides, TRY-based prime rent was revised as TRY 185 per sq m/month.

According to Collier's future view, the vacancy rate for Istanbul Class A office buildings, approaching 30% in the period before the pandemic, may reach higher levels in the next one or two years. As a result, we anticipate that office building with imperfect competition on a quality basis will have to change their use outside the office (education, health, tourism, etc.). This may bring some opportunities to invest in office buildings to rent out to the corporate hospitals and schools.

Source: tuik.gov.tr, jll.com.tr, colliers.com, gyoder.org.tr

GONÇALO PEREIRACEO of IQI Portugal


PORTUGAL


Despite the second general confinement in the first months of 2021, it has anticipated a strong recovery in real estate investments led by international investors to whom Portuguese property prices remain attractive. It is estimated that the investment will reach a total of 3,000 million euros in 2021, a value higher than the 2,800 million transacted last year.

ResidentialAccording to the National Bank, national and international demand in the residential component in 2021 remained strong with the increase of new loans for house purchases and the steady high growth of foreign direct investment in real estate. The average selling price of houses in Portugal in the first quarter of 2021 amounted to €1,715 per square meter.

In the first three months of 2021, it has estimated that 17,150 homes in the metropolitan area of Lisbon were sold and 8,120 in the metropolitan area of Porto, and 3,900 in the Algarve.

Comparing the two periods of most extraordinary restrictions, in the first three months of this year, around 49,600 homes were sold across the country, increasing 57% over the 31,600 properties traded during the second quarter of 2020.

OfficeIn 2021 it has predicted that multinational companies' demand for office spaces will remain similar to 2020. However, workplace concepts are expected to change. At the same time, there is a need for improving office spaces with common areas and social spaces for teamwork and activities, adapting to the new remote working reality.

In the first quarter of 2021, the more significant Lisbon area office market registered a year-on-year decrease of 34% in new lease deals.

The value of prime rents should stay similar to 2020 at €25/sqm/month in Lisbon and €18/sqm/ month in Porto, although the average rent may decrease due to a drop in the value of secondary product.

CommercialInvestment in commercial real estate reached 221 million euros in the first quarter of 2021, more than doubling the 90 million euros traded in the second quarter of 2020.

The most affected asset classes have been retail and hospitality due to the closing and restrictions on commercial spaces during the pandemic, yet still accounting for around 15% of the total investment amount.

Supermarkets and hypermarkets remain substantial assets as investment products.E-commerce growth has been favourable to the logistics sector, with a significant increase in demand.

Source: bportugal.pt,cbre.pt, dinheirovivo.pt, jll.pt

Juwai IQI will achieve this goal by reducing its emissions impact and then offsetting any remaining carbon footprint through scientifically valid initiatives that remove carbon from the atmosphere.

Juwai IQI says it achieved 293 per cent more new project sales in the year 2021 to date, compared with the same five months in 2020, despite the ongoing Covid-19 pandemic and weak market sentiment.

Juwai IQI does better this yeardespite the pandemic

Juwai IQI Moments

We commit toNet Zero Emissions

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