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Jun 11, 2015

CBRE Global Investor Intentions Survey 2015

The 2015 Global Investor Intentions Survey was conducted using an online questionnaire in January 2015. Responses were obtained from more than 700 real estate investors in the Americas, EMEA and Asia Pacific.

Expect 10-15% more capital into real estate in 2015

Investors inntend to increase the capital flow in commercial real estate by 10-15% compared to last year. Investors continue to move up the risk curve in search of higher returns.  

51% of survey respondents said that thez will focus on value add and opportunistic investments this year. It is almost growth by 20% compared to the last year survey.  

Offices still among the most preferred sector

The highest increase of investment activity compared to the last year is expected to industrial properties, on the other hand investors interest in retail investment continue to fade. Office sector will traditionally remain the sector with the highest volume of commercial real estate investment.

Main threats to property markets

Respondents identified overpricing and economic slowdown/weakness as the main threats to property markets in the coming year. There is also increased concern about the potential for financial and political crises.

Main obstacles to acquiring assets were identified by investors as follows: asset pricing, availability odf assets and competition fromother investors.

38 % investors will invest outside their own region

Among investors looking to invest outside their own region, 31% of respondents identified Western Europe as the top destination. Eleven percent of respondents identified Central and Eastern Europe as their top destination, a huge result relative to the size of these markets.

 

Share

Region

31 %

Western Europe

27 %

Asia

20 %

North America

11 %

Central and Eastern Europe

7 %

Pacific

4 %

South America

1 %

Africa and Middle East

Source: CBRE Investor Intentions Survey, April 2015

 

Popular cities amng real estate investors

London retained its position as the top city for investment.

Rank

City

1

London

2

Tokyo

3

San Francisco

4

Sydney

5

New York

6

Madrid

7

Dallas

8

Los Angeles

9

Seattle

10

Paris

Source: CBRE Investor Intentions Survey, April 2015

 

Richard Curran, Managing Director CBRE says: Richard Curran, Managing Director CBRE says: „Investors identified asset overpricing as the biggest threat to property markets. Investment in commercial real estate is becoming more popular among investors due to current environment of low interest rates, low yields of government bonds and excess of capital thanks to quantitative easing launched by central banks. Demand for real estate is much higher than the supply, which leads to increasing price level of real estate. The factor behind increasing price level is tighter yield, not rental growth. We register increased pricing particularly in case of prime products given their limited availability. The capital value of European real estate grew by 10% only in 2014 and it will rise further in connection with strengthening of economy. High real estate price level together with low yields in Western Europe led investors to accept higher risk and direct their investment also outside of Western Europe. Eleven percent of respondents identified Central and Eastern Europe as their top destination in the Survey. Whilst markets in this region are small, they are showing distinct signs of economic revival, stable business environment and higher yields than in Western Europe.“

https://www.cbreproperties.cz/cs