Investors from Europe, Middle East & Africa (EMEA) to make $475 billion in real estate investments in 2017, says CBRE
A new survey from CBRE has unveiled the purchasing intentions of property investors from across three continents, with nearly half expecting to increase their investment from 2016.
The Investors Intentions Survey, conducted by the firm between December 2016 and February 2017, compiled the investment plans of 1,968 property investors – with asset managers, insurance companies, pension funds, and private investors amongst the respondents.
Key findings from the poll show that most respondents are highly motivated to continue investing in EMEA real estate, citing the high yields offered by the property market compare to other asset classes, such as government bonds, as a motivating factor.
In terms of purchasing activity, 41% of respondents expect to invest more capital in 2017 than they did last year, although spending less than in 2014 and 2015.
Almost half of this group also indicated that they were looking to increase their investment volumes by 20% or more.
Across individual countries, Germany was listed as the top investment location for the second consecutive year, with 22% of respondents favouring its property market. The UK retained second place in the rankings, with 20% of those surveyed designating it an attractive location for investment.
London remained the most popular city for property investment in the EMEA for the sixth year running, surpassing Berlin, Madrid and Amsterdam amongst respondents.
The findings also suggest that investors are increasingly looking to alternative asset classes for capital growth, with 71% of respondents indicating they have already invested in these non-traditional property areas and 64% stating they are actively pursuing further opportunities.
Student accommodation achieved the greatest interest from respondents, with 27% looking to add student properties to their portfolios; other asset classes receiving heightened investor focus were real estate debt, retirement living, residential, leisure and healthcare.
Earlier this week, a separate poll of about 2,000 people, commissioned by Halifax, shows that confidence in the UK’s housing market is stabilising in the wake of Brexit talks.