Commercial real estate market gets reality check

Although the second quarter of 2011 showed an increase in commercial real estate sales, the activity since July has stagnated. What was initially thought of as a rebound year, may be slowly leveling off, The Economic Times reports.

Colin Dyer, Jones Lang LaSalle global CEO, revealed to the news source the lack of sales is due to the international economic situation, which has investors looking all over for low-risk opportunities.

According to JLL, Asia Pacific has become an attractive region for global real estate firms due to the area's low cost and high population.

The real estate service company's India business will contribute approximately 5 percent of its global revenues in the next year and eventually plans to increase to 6 to 7 percent, according to Dyer.

"The whole Indian business is growing faster than Asia, which is growing faster than the rest of the world," Dyer said. "So it is taking up share as we predicted it would."

According to a study by JLL, investors dedicated $104 billion for Asian commercial property this year - a 45 percent increase since mid-2010.