Markbericht Asien Oct08

The year ended on a negative note for Asia’s economies and real estate markets.

Executive Summary

• The dislocation of the global credit market severely impacted Asia’s economy in 2008, especially in the second half of the year. The environment is expected to remain challenging in 2009.
  Lower energy prices will help reduce Asia’s inflationary cycle and could exert downward pressure on interest rates in 2009.
  
• The cost of debt will remain high as the region undergoes a deleveraging process. Cautious banks will underwrite debt with lower loan-to-value ratios compared to pre-crisis levels.
  
• Real estate investment sales will continue at an anemic pace in 2009, as potential buyers remain wary and banks are reluctant to ease lending restrictions.
  
• Tenants will have the upper hand in the space markets in 2009, while landlords will have to revise their priorities. Instead of maximizing rental revenues as they have in past years, landlords will be focused on retaining existing tenants and attracting new ones.