The world economy is maybe not completely on track but toward a recovery! After a fairly prolonged period of inactivity, property markets around the world are starting to ramp up with sales volume increasing moderately. The two-tier real estate market will persist in 2011 and movements in asset prices will be strongly differentiated according to product type, quality and location. Robust competition for trophy assets in the world’s high order business hubs will continue to push up capital values – this overall pattern combines two very different pictures, one for economies that have been hit hard by the effects of deflating real estate bubbles and sovereign debt crises and a second for those that suffered more modestly and indirectly from spillovers as global activity declined. Substantially less scope for prime-end yield compression in 2011 than in 2010 will be behind this dynamic. Nevertheless, for a large spectrum of the secondary market, values are likely to continue to flounder near the cyclical bottom with investors more sensitive to risk, price discovery in many markets still far from complete and distressed sales negatively affecting values.