Real estate services company DTZ Holdings is betting big on growth in China, as most of the major global property markets are languishing, a top company official said on Thursday.
"During the past few months, we entered markets like New Zealand, Portugal and Austria," said Paul Idzik, group chief executive officer of DTZ Holdings.
"At the same time, we also increased investments in other markets like China, and recently opened an office in Vietman," he said.
According to Idzik, the size of the commercial real estate market, clients' needs and the availability of talent are the prime factors that decide DTZ Holdings's business expansion.
The Chinese property market, rather than the US or Europe, offers the best returns, said Edward Cheung, chief executive of DTZ's China division.
"The Chinese market is attractive as interest rates are still very low and there is a new breed of domestic investors who are aggressive and cash rich," said Cheung
DTZ has opened three offices in the past three years, in Qingdao, Xiamen and Nanjing and has 17 offices in China. "Our target over the next 10 years will be to represent all areas of the mainland," said Cheung.
The company will open an office in Changsha later this year, while the offices in Ningbo and Haikou are expected to be ready by next year.
DTZ recently set up a shopping center management team in Beijing and Shanghai. With the government committed to building more shopping facilities for residents, there has also been a surge in such facilities. Since DTZ Holdings has immense experience in this area, it set up the retail management team, he said.
The company is also focusing on asset evaluation as it expects real estate investment trusts to take off in China over the next two years.
DTZ Holdings reported revenue of 356 million pounds for the fiscal year ending April 2010, down 2.2 percent year-on-year. However, during the first quarter that ended in July, the DTZ Holdings said revenue rose 26 percent over the same period a year ago.
