GLOBALINVESTOR INTENTIONS
SURVEY 2015CBRE GLOBAL RESEARCH
INTENDING TO BUY MORE
Gradual recoveryof real estate
investment afterGFC underpinsstrong buying
intentions
PREFER VALUE ADD/OPPORTUNISTIC
ASSETSInvestors continue to move up therisk curve
EXPECT 10-15%MORE CAPITAL INTO REAL ESTATE IN 2015 1. Asset pricing
2. Availability3. Competition
The positive buying momentum will support
continued growth in global real estate capital flows
TOP. 1LONDON
TOP. 2TOKYO
TOP. 2TOKYO
TOP. 2TOKYO
TOP. 4SYDNEY
TOP. 3SAN
FRANCISCO
City rankings show sustained interest in gateway cities and there is stronger sentiment towards tier two markets
GLOBALINVESTOR INTENTIONS SURVEY 2015CBRE GLOBAL RESEARCH
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
1. Asset pricing2. Availability
3. Competition
WESTERNEUROPE
31%CENTRAL AND
EASTERNEUROPE
11%
PACIFIC7 %
AFRICA ANDMIDDLE
EAST
1%
SOUTHAMERICA
4%
ASIA27%
NORTHAMERICA
20%
TOP. 10PARIS
TOP. 6MADRID
TOP. 5NEW YORK
TOP. 9SEATTLE
TOP. 8LOS ANGELES
TOP. 7DALLAS
Stronger cross-regional investment appetite:
38% indicating they plan to invest outside their own region. The mostpreferred regions are:
CBRE GLOBAL RESEARCH4 |
Executive SummaryThe 2015 Global Investor Intentions Survey shows that global real estate investors remain confident and their intentions are strongly expansionary. The appetite for cross-regional investment is increasing and more investors intend to deploy capital outside their own region this year. Despite the strong liquidity in the investment market, investors are concerned about the intense competition for assets. Pricing is identified as the biggest obstacle to making acquisitions. There continue to be worries over economic weakness but there are encouraging signs of recovery in the U.S. and sustained growth in Asia. Tighter yields in most markets are prompting investors in EMEA and North America to place a stronger emphasis on value add and opportunistic investments for higher returns. In contrast, investors in Asia Pacific intend to increase their focus on acquiring core assets in 2015. This trend is partly due to the increased participation of long-term low risk-tolerant institutional investors both from Asia and internationally. The survey suggests that in the coming year investors are likely to rebalance their portfolios and switch from market sectors that are perceived to be overpriced. Second tier and smaller cities are gaining popularity but London remains the preferred city. Offices are the favoured asset class whilst retail is lagging. Alternative property sectors such as student living, healthcare and retirement homes are seeing stronger interest. Overall, the mood among investors remains upbeat and buying demand will exceed selling pressure. CBRE believes 2015 will be another strong year for the global real estate investment market, with capital flows expected to increase by 10-15%.
Executive SummaryThe 2015 Global Investor Intentions Survey shows that global real estate investors remain confident and their intentions are strongly expansionary. The appetite for cross-regional investment is increasing and more investors intend to deploy capital outside their own region this year. Despite the strong liquidity in the investment market, investors are concerned about the intense competition for assets. Pricing is identified as the biggest obstacle to making acquisitions. There continue to be worries over economic weakness but there are encouraging signs of recovery in the U.S. and sustained growth in Asia. Tighter yields in most markets are prompting investors in EMEA and North America to place a stronger emphasis on value add and opportunistic investments for higher returns. In contrast, investors in Asia Pacific intend to increase their focus on acquiring core assets in 2015. This trend is partly due to the increased participation of long-term low risk-tolerant institutional investors both from Asia and internationally. The survey suggests that in the coming year investors are likely to rebalance their portfolios and switch from market sectors that are perceived to be overpriced. Second tier and smaller cities are gaining popularity but London remains the preferred city. Offices are the favoured asset class whilst retail is lagging. Alternative property sectors such as student living, healthcare and retirement homes are seeing stronger interest. Overall, the mood among investors remains upbeat and buying demand will exceed selling pressure. CBRE believes 2015 will be another strong year for the global real estate investment market, with capital flows expected to increase by 10-15%.
The 2015 Global Investor Intentions Survey shows that global real estate investors remain confident and their intentions are strongly expansionary. The appetite for cross-regional investment is increasing and more investors intend to deploy capital outside their own region this year. Despite the strong liquidity in the investment market, investors are concerned about the intense competition for assets. Pricing is identified as the biggest obstacle to making acquisitions. There continue to be worries over economic weakness but there are encouraging signs of recovery in the U.S. and sustained growth in Asia. Tighter yields in most markets are prompting investors in EMEA and North America to place a stronger emphasis on value add and opportunistic investments for higher returns. In contrast, investors in Asia Pacific intend to increase their focus on acquiring core assets in 2015. This trend is partly due to the increased participation of long-term low risk-tolerant institutional investors both from Asia and internationally. The survey suggests that in the coming year investors are likely to rebalance their portfolios and switch from market sectors that are perceived to be overpriced. Second tier and smaller cities are gaining popularity but London remains the preferred city. Offices are the favoured asset class whilst retail is lagging. Alternative property sectors such as student living, healthcare and retirement homes are seeing stronger interest. Overall, the mood among investors remains upbeat and buying demand will exceed selling pressure. CBRE believes 2015 will be another strong year for the global real estate investment market, with capital flows expected to increase by 10-15%.
Executive Summary
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 5
The “new normal” economic environment of moderate growth, low interest rates and falling bond yields continued to drive investment in commercial real estate in 2014, supported by the inherent qualities of property as an asset class.
Capital flows into global real estate increased to US$835 billion in 2014, a figure almost four times greater than the US$232 billion recorded in 2009. EMEA posted the greatest increase in capital flows in 2014, followed by Asia Pacific and the Americas (Figure 1). On the back of the ample liquidity, capital values have outpaced more moderate rental value growth, resulting in tighter yields (Figures 2 and 3).
Total cross border capital flows into all types of investment, including stocks and bonds, have been level over the past three years (Figure 4), reflecting the general nervousness about the global economy. By contrast, capital flows into real estate have picked up sharply. We think this trend will continue in 2015.
APAC EMEA AMERICAS
APAC EMEAAMERICAS
62
184
185
2008 48 76
109
2009 79
164
152
2010 81
249
174
2011 90
302
168
2012
107
368
225
2013
126
412
297
2014
360
2007
96
419
8.4%
5.6%
7.2%
6.1% 6.3% 5.2%
RetailIndustrial
Offices8.2%
6.6% 6.9%
Figure 1: Real estate investment turnover by region
Source: CBRE Research, Real Capital Analytics, April 2015.
Note: Investment sales volumes in U.S. dollars
Capital Flows into Global Real Estate Surge to
Post-GFC highAPAC EMEA AMERICAS
APAC EMEAAMERICAS
62
184
185
2008 48 76
109
2009 79
164
152
2010 81
249
174
2011 90
302
168
2012
107
368
225
2013
126
412
297
2014
360
2007
96
419
8.4%
5.6%
7.2%
6.1% 6.3% 5.2%
RetailIndustrial
Offices8.2%
6.6% 6.9%
Source: CBRE Research, April 2015.
Figure 2: Capital value growth by sector and region 2014
Figure 3: Rental value growth by sector and region 2014
Retail
Industrial
Offices
APAC EMEAAMERICAS
4.3% 3.3%
2.7%
4.7%
1.4% 0.8%
5.8%
2.5%
0.8%
0
200
400
600
800
1000
1200
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
$ Billion
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Global Capital Flows into All Asset Classes (LHS)
Global Real Estate Capital Flows (RHS)
Source: CBRE Research, April 2015.
CBRE GLOBAL RESEARCH6 |
Retail
Industrial
Offices
APAC EMEAAMERICAS
4.3% 3.3%
2.7%
4.7%
1.4% 0.8%
5.8%
2.5%
0.8%
0
200
400
600
800
1000
1200
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
$ Billion
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Global Capital Flows into All Asset Classes (LHS)
Global Real Estate Capital Flows (RHS)
Source: Mckinsey, CBRE Research, April 2015.
Figure 4: Global real estate capital flows vs. global capital flows
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 7
50%
21% Asset Pricing
Availabilityof Assets
Competition from other Investors
4%Low MarketTransparency
2%Currency Risk
1%Tax
1%Lack of InvestmentPartners
1%Cost or Availabilityof Debt
1%Other
19%
8%14%
Lower Activity
20152014
32%33%
The Same
61%
53%
Higher Activity
53%
39% 10-15%19%
2014 2014 2015F2015NET BUYING INTENTIONS Balance of higher minus lower purchasing activity
ANNUAL CHANGE IN GLOBAL REAL ESTATE CAPITAL FLOWS
Source: CBRE Investor Intentions Survey, April 2015.
Figure 5: Purchasing activity compared to last year
Source: CBRE Investor Intentions Survey, April 2015.
Our view on the continued buoyancy of real estate capital flows is supported by our survey. Investor intentions for 2015 remain strongly expansionary (Figure 5). Fifty-three percent of respondents said they plan to increase their purchases this year, a slight decline on the 61% recorded in the 2014 survey. Last year was a particularly strong one for global real estate investment and it is natural for investor intentions to moderate slightly.
Figure 6: Main obstacle to acquiring assets
However, not all of this investment demand will besatisfied as investors globally are facing intense competition for assets at price levels that provide desired returns (Figure 6). Fifty percent of respondents identified asset pricing as the top obstacle to acquiring assets, a significant increase on last year, when 30% reported it as the main
challenge. The tight availability of assets (21%) and competition from other investors (19%) were
also identified as obstacles in all regions.
Nevertheless, investor intentions remain very positive. On the
basis of the relationship between survey
sentiment and
investment volumes in
previous years, CBRE predicts that global real
estate investment volume will increase by 10-15% in 2015
(Figure 7), from 19% in 2014.
Global Investors are Upbeat
CBRE GLOBAL RESEARCH8 |
Figure 7: Projected increase in global real estate investment volume
Source: CBRE Investor Intentions Survey, CBRE Research, April 2015.
8%14%
Lower Activity
20152014
32%33%
The Same
61%
53%
Higher Activity
53%
39% 10-15%19%
2014 2014 2015F2015NET BUYING INTENTIONS Balance of higher minus lower purchasing activity
ANNUAL CHANGE IN GLOBAL REAL ESTATE CAPITAL FLOWS
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 9
The globalisation of commercial real estate investment was reflected by the 40% y-o-y growth in cross-regional capital flows in 2014, a figure well above the overall market (19% y-o-y). This trend is expected to continue and is supported by the survey findings of investors’ intentions to invest outside their region of domicile. Investors’ appetite for cross-regional investment (investors from EMEA, North America and Asia Pacific investing outside their own region) grew significantly, with 38% of respondents saying they intend to invest outside their own region this year, up from only 28% in 2014 (Figure 8).
The increase was largely due to more North American investors intending to invest internationally (Figure 9). The economic picture in the U.S. continues to strengthen and is boosting investor confidence. This is underpinning demand among domestic investors to place capital not only within the country, but also in overseas markets. The improved purchasing power of the U.S. dollar is also supporting the flow of U.S. capital into other regions. However, investment returns and diversification remain the most important factors supporting outbound investment.
Asia Pacific investors have the strongest appetite for outbound investment at 40%, although the figure was slightly down on last year. Cross-border real estate investment by Asian investors surged by 23% y-o-y in 2014. Many groups in this region are likely to slow the pace of building up their global property holdings after expanding so rapidly in recent years. This is supported by the survey findings that fewer Asian investors plan to increase the amount they invest outside the region compared to last year.
APAC EMEA AMERICAS GLOBAL
2%
2%
44% 40%
36%
28%
14%
38% 38% 37%
Less Purchasing
Same Levelof Purchasing
MorePurchasing
2014 2015 17% 22%
8% 14% 28%
38%
20152014
Cross-Border Investment: Stronger Appetite
Led by North American Investors
Figure 8: Will you invest outside your own region?
Source: CBRE Investor Intentions Survey, April 2015.
APAC EMEA AMERICAS GLOBAL
2%
2%
44% 40%
36%
28%
14%
38% 38% 37%
Less Purchasing
Same Levelof Purchasing
MorePurchasing
2014 2015 17% 22%
8% 14% 28%
38%
20152014
Source: CBRE Investor Intentions Survey, April 2015.
Figure 9: Cross-regional investment intentions by region
CBRE GLOBAL RESEARCH10 |
Among investors looking to invest outside their own region, 31% of respondents identified Western Europe as the top destination (Figure 10), which is also the region that received the vast majority of cross-border investment. Despite the slowdown in China, 27% of investors regarded Asia as their preferred location, perhaps due to the fact that economic growth here still comfortably outpaces other regions and continues to offer significant long-term potential.
Eleven percent of respondents identified Central and Eastern Europe as their top destination, a huge result relative to the size of these markets. Whilst markets in this region are small, they are showing distinct signs of economic revival, prompting investors to take an interest.
4%
SOUTHAMERICA
1%
AFRICA ANDMIDDLE
EAST
7%
PACIFIC
11%CENTRAL AND
EASTERNEUROPE
31%
WESTERNEUROPE
ASIA
20%
NORTHAMERICA
27%
30%30%
22%
19%
16% 15%
14% 14%14%13% 12%
10%
18%
8% 7%
5% 5% 5% 6%
SEATTLE PARIS LOS ANGELES
LONDON SANFRANCISCO
SYDNEY NEW YORK MADRID DALLASTOKYO
InvestmentTurnover
Y-o-Y ChangeBased on US$
-11% 58% 126% 24% 15% 98% 11% 30% 3% 51%
20152014
16%
Preferred Region: Western Europe is the
Top Destination
Figure 10: Preferred region for cross-border investment
Source: CBRE Investor Intentions Survey, April 2015.
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 11
4%
SOUTHAMERICA
1%
AFRICA ANDMIDDLE
EAST
7%
PACIFIC
11%CENTRAL AND
EASTERNEUROPE
31%
WESTERNEUROPE
ASIA
20%
NORTHAMERICA
27%
30%30%
22%
19%
16% 15%
14% 14%14%13% 12%
10%
18%
8% 7%
5% 5% 5% 6%
SEATTLE PARIS LOS ANGELES
LONDON SANFRANCISCO
SYDNEY NEW YORK MADRID DALLASTOKYO
InvestmentTurnover
Y-o-Y ChangeBased on US$
-11% 58% 126% 24% 15% 98% 11% 30% 3% 51%
20152014
16%
London retained its position as the top city for investment, although investor intentions were flat on a year-over-year basis. Other gateway cities such as Tokyo, Sydney, New York and Paris remained in the top ten (Figure 11).
There is much stronger interest in second tier cities this year, with the likes of Madrid, Dallas and Seattle all making the top ten. Yields in gateway cities in EMEA and North America have already compressed to a point where investors feel compelled to search for opportunities elsewhere. This is also linked to the marked increase in appetite among investors from EMEA and North America for value add and opportunistic investments.
Preferred Cities:London Retains Top Spot but
Second-tier Cities Gain Popularity
Figure 11: Preferred cities for investment
Source: CBRE Investor Intentions Survey 2015, Real Capital Analytics, April 2015.
CBRE GLOBAL RESEARCH12 |
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 13
Preferred Sectors: Offices Favoured; Retail Lagging
Figure 12: Preferred sector for investment
33%
33% 28%
16% 15% 16% 12%
38%
21%
29% 33%
28%
14% 18%
17% 16%
16% 15% 10% 8%
3% 2%
4% 7%
4% 3% 2% Offices All Industrial Logistics All Retail Residential Shopping
Centre Hotels/Resorts
Retail - High Street
Retail - Other
Industrial - BigBox/Warehouse
Office Retail Residential Industrial
MainImbalance
20152014
Sector Attractiveness in 2015 Survey
Investment Turnover in 2014 as % of Total
Source: CBRE Investor Intentions Survey, April 2015.
Figure 13: Imbalance in investor intentions vs. actual activity
33%
33% 28%
16% 15% 16% 12%
38%
21%
29% 33%
28%
14% 18%
17% 16%
16% 15% 10% 8%
3% 2%
4% 7%
4% 3% 2% Offices All Industrial Logistics All Retail Residential Shopping
Centre Hotels/Resorts
Retail - High Street
Retail - Other
Industrial - BigBox/Warehouse
Office Retail Residential Industrial
MainImbalance
20152014
Sector Attractiveness in 2015 Survey
Investment Turnover in 2014 as % of Total
Source: CBRE Investor Intentions Survey, April 2015.
Office and industrial remain the preferred sectors, selected by 33% and 28% of investors, respectively, percentages virtually unchanged from last year’s survey (Figure 12).
With the exception of North America, investor interest in retail assets continues to fade as structural changes in the sector such as the rise of e-commerce and other new formats discourages investment. Decline in investor interest in retail may also be explained by the fact that it is a more challenging sector to manage, as large shopping centres in many markets are tied up in REITs and high street retail units have small lot sizes and are consequently difficult to build up into large holdings.
That said, CBRE expects to see a consumer revival in most regions in the coming year – indeed one is already taking place in the North America – and believes retail still offers significant opportunities for investors and should not be overlooked.
Investor interest in industrial and logistics assets is being driven by the structural change in the retail
sector and the growth of e-commerce. However, there is a limited amount of assets in this sector available for sale, meaning that investors will continue to find it challenging to source deals (Figure 13).
CBRE GLOBAL RESEARCH14 |
Keen competition for assets has propelled investment demand for alternative sectors (Figure 14). Investment interest in most alternative sectors outpaces existing investment. Real estate debt is the preferred option this year as investment is being supported by the availability of debt products such as CMBS. Sectors recording strong growth in interest included student living, healthcare and retirement living. There is strong interest in these niche residential sectors, supported by the trend of growth in higher education and ageing populations.
Growing Demandfor Alternative Sectors
Figure 14: Investor interest in alternative sectors
26% 27%
51%
43%
20%
2%5%
25%
Prime or Core Assets Value Add/ Opportunistic Distressed AssetsGood Secondary
20152014
0% 5% 10% 15% 20% 25% 30% 35% 40%
Already Invested Interested
Real Estate Debt
Student Living
Healthcare
Retirement Living
Leisure/Entertainment
Infrastructure
Data Centre
Self-Storage
Automotive/Car Parks
Source: CBRE Investor Intentions Survey, April 2015.
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 15
Investors indicated that they are moving up the risk curve in search of higher returns. Around half of survey respondents said that they will focus on value add and opportunistic investments this year, up from 43% in the 2014 survey (Figure 15).
EMEA and North America both saw a marked increase in investor interest in value add and opportunistic investments (Figure 16), as indicated by the increased appetite for assets in second-tier markets.
In contrast, Asia Pacific saw a significant jump to 43% in this year’s survey compared to 29% in last year’s survey in the percentage of investors preferring prime or core assets. Risk appetite in this region is now polarised at each end of the spectrum. This is due to the strong desire for wealth preservation in a region where savings rates are
high together with increased participation by Asian and international institutional investors which have relatively low risk profiles.
Risk Preference:Asia Pacific Investors Focus on
Core; EMEA and U.S. Buyers Look for Value Add
Figure 15: Preferred asset type for purchase
Source: CBRE Investor Intentions Survey, April 2015.
26% 27%
51%
43%
20%
2%5%
25%
Prime or Core Assets Value Add/ Opportunistic Distressed AssetsGood Secondary
20152014
0% 5% 10% 15% 20% 25% 30% 35% 40%
Already Invested Interested
Real Estate Debt
Student Living
Healthcare
Retirement Living
Leisure/Entertainment
Infrastructure
Data Centre
Self-Storage
Automotive/Car Parks
43%
21%29%
40% 38%
64%
11%
APAC EMEA AMERICAS
Prime or Core Assets
Value Add/ OpportunisticDistressed Assets
Good Secondary
69%
54% 45%
29% 20%
8% 8% 7% 5% Direct Partnership /
Joint Venture PropertyFund
REIT PrivateDebt
ListedReal EstateCompany
CMBS Other Equity Other Debt
30%
14%5% 2%
Figure 16: Risk profile by region
Source: CBRE Investor Intentions Survey, April 2015.
CBRE GLOBAL RESEARCH16 |
Over the past few years investors have invested via direct channels and partnerships for reasons of control over their portfolios and strategies. Many buyers were caught with illiquid fund holdings after the onset of the global financial crisis and were unable to make a quick exit. Costs can be lower with direct joint venture investing. The survey (Figure 17) shows these preferences will continue in the coming year. That said, a considerable percentage of responses (45%) indicate a preference to invest via funds. This is linked to the recovery in global private equity fund raising activity.
Figure 17: Principal types of investment vehicles
43%
21%29%
40% 38%
64%
11%
APAC EMEA AMERICAS
Prime or Core Assets
Value Add/ OpportunisticDistressed Assets
Good Secondary
69%
54% 45%
29% 20%
8% 8% 7% 5% Direct Partnership /
Joint Venture PropertyFund
REIT PrivateDebt
ListedReal EstateCompany
CMBS Other Equity Other Debt
30%
14%5% 2%
Source: CBRE Investor Intentions Survey, April 2015.
Note: multiple responses were allowed.
Investment Vehicle: Direct and Partnership Investing
Remain the Norm
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 17
advisors who really understand the local market in order to meet their investment goals.
Investors showed significantly lower concern over tapering in the U.S., rising interest rates and/ or the threat of inflation. Only 5% of respondents selected this as the biggest threat, down from 24% in 2014. Two reasons for the drop are the greater clarity provided by the U.S. Federal Reserve (the Fed) and the stronger performance of the U.S. economy. This has also boosted the acceptance that the Fed will increase interest rates later in 2015. Further loosening by central banks elsewhere has also helped lower concerns over interest rates. Higher interest rates and lending costs are challenges that investors will need to prepare for, but not for the next couple of years.
Respondents identified overpricing and economic slowdown/weakness as the main threats to property markets in the coming year (Figure 18). There is also increased concern about the potential for financial and political crises. Despite these worries, CBRE believes the global real estate market will continue to offer good spreads with a modicum of rental growth.
Investors are set to increase their selling activity in the coming year (Figure 19) as they look to rebalance their portfolios and offload non-core assets. They may switch from market sectors that are perceived to be overpriced to assets that provide higher returns. However, buying demand will still exceed supply. Given investors’ intentions to increase investment in 2015 alongside the challenge of a very competitive marketplace, they will need to work hard and be creative; be proactive in locating assets; and choose
EMEAAPACAMERICAS
49%58%
45% 46%
46%
54%
53%HIGHER BUYINGACTIVITY42%HIGHER SELLING
ACTIVITY
Perception thatproperty has become
over-priced
Economic slowdown/weakness elsewhere
in the world
Other financial / political crisis **
Overbuilding / excess supply
Domestic economic measures / policies
Government policy measures relating
to property
US tapering, rising interest rates
and / or threat of inflation
Inability of investors to source
new debt
22%
14% 14%
8% 8%
6%
2%5%
2014
2014
2014
2015
Figure 18: Main threats to property markets
Source: CBRE Investor Intentions Survey, April 2015.
** Includes China hard landing and failure of Abenomics.
Strong Pricing to Drive Portfolio Rebalancing
CBRE GLOBAL RESEARCH18 |
The 2015 Global Investor Intentions Survey shows that global real estate investors remain confident and their intentions are strongly expansionary.
The appetite for cross-regional investment is increasing and more investors intend to deploy capital outside their own region during 2015. Many investors plan to move up the risk curve in search of higher yields, a trend that is expected to result in a stronger focus on value add and opportunistic investments in the coming year.
Whilst pricing and potential interest rate hikes remain a concern, CBRE believes that 2015 will be another strong year for the global real estate investment market, with capital flows expected to increase by 10-15%.
The 2015 Global Investor Intentions Survey shows that global real estate investors remain confident and their intentions are strongly expansionary.
The appetite for cross-regional investment is increasing and more investors intend to deploy capital outside their own region during 2015. Many investors plan to move up the risk curve in search of higher yields, a trend that is expected to result in a stronger focus on value add and opportunistic investments in the coming year.
Whilst pricing and potential interest rate hikes remain a concern, CBRE believes that 2015 will be another strong year for the global real estate investment market, with capital flows expected to increase by 10-15%.
Conclusion Conclusion
GLOBAL INVESTOR INTENTIONS SURVEY 2015
| 19
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 from a broad range of investor types including asset managers, property companies, institutional investors, REITs, investors and banks.
By region, 317 responses were obtained in Asia Pacific; 290 in EMEA; and 85 in the Americas.
The global survey results were formulated by weighting the survey responses according to real estate capital flows in all three regions.
Weighting by Capital Flow Survey Number of
Respondents
100% 692Global
49% 85AmericaSurvey
36% 290
15% 317
EMEASurvey
APACSurvey
Fund or AssetManager36%
17%
15%10%
3% 3%
9%7%
InstitutionalInvestor*
Propertycompany
Private Equity Firm / Venture Capital
Private IndividualInvestors / Family Office
OtherBank
REIT
Figure 20: Composite of survey respondents investor type
Source: CBRE Investor Intentions Survey, April 2015.
* Institutional investors include pension funds, insurance companies and Sovereign Wealth Funds.
About the Survey
Weighting by Capital Flow Survey Number of
Respondents
100% 692Global
49% 85AmericaSurvey
36% 290
15% 317
EMEASurvey
APACSurvey
Fund or AssetManager36%
17%
15%10%
3% 3%
9%7%
InstitutionalInvestor*
Propertycompany
Private Equity Firm / Venture Capital
Private IndividualInvestors / Family Office
OtherBank
REIT
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Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
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