In 2017, there was over $1.7 trillion in "dry powder" available for global property investment.

For global real estate investors, North America is the preferred area. عقارات

Stronger economic growth, the availability of debt capital, and a more optimistic outlook from investors are expected to drive global capital flows in 2017, according to CBRE's latest Global Investor Intentions Survey for 2017, with $1.7 trillion of 'dry powder' ready to deploy in real estate this year.

 

Because of the relatively high income yield, investors have enough resources and a clear incentive to invest in real estate, according to the 2017 global survey. Investors favor North America, with London, Los Angeles, and Sydney being the most common cities in each of the major regions. The most popular asset sector is office, followed by logistics, which grew strongly in 2017 and is a close second.

 

Investors have planned $1.7 trillion in real estate capital expenditures, according to the survey results. In comparison to 2016, the majority of investors expect their buying behavior to increase or stay the same. By a large margin, those investors who plan to spend more (40 percent) outnumber those who plan to spend less (16 percent), suggesting that real estate as an asset class remains common.

 

Despite a turbulent global political climate and important European elections in France and Germany, investors are unconcerned about global or local politics. The key fears of investors are an undefined "global economic shock" (22%), as well as "faster than anticipated interest rate rises" (21 percent). This year, the latter issue is felt even more profoundly, which is the most significant shift from 2016.

 

"Investors were reeling from the turmoil in world stock markets this time last year; now, equities are at record highs, and economic sentiment is upbeat. Although there is confusion about the course of economic policy, there is an increasing expectation that reforms will help to unlock development. Although there are some clouds on the horizon—emerging market debt appears to be a concern, as does Greece's financial situation—economic momentum, combined with property's yield advantages, should ensure another year of significant capital flows into global real estate "CBRE's Global President of Capital Markets, Chris Ludeman, said.

 

Investors had moved decisively in favor of core assets and away from secondary and value-added risk groups in last year's survey. With a drop in demand for core assets and a rise in interest in core-plus and opportunistic assets, this trend has partially reversed in 2017. The high cost of real estate is cited by nearly half of investors (48%) as the key impediment to capital deployment. This increased interest in core-plus and opportunistic stocks reflects the issue, but it also indicates that investors are slightly more risk-averse than last year.

 

Los Angeles is the most popular investment destination in the Americas. The city of Dallas/Fort Worth has risen to second place. Washington, D.C. is the greatest mover, jumping into the top six for the first time since missing out last year. Atlanta advances one spot, while Seattle drops to seventh place after failing to make the top tier last year.

 

London remains the most appealing city for investors in EMEA. Berlin has risen two spots to become the second most famous vacation spot. Although there is some uncertainty about European elections, it does not appear that this has dampened demand for real estate so far. Despite the confusion surrounding Brexit, the survey indicates that investors are becoming more involved in the United Kingdom.

 

In APAC, Sydney is once again the most famous destination, with Tokyo a distant second. Because of their liquidity, clarity, and positive long-term prospects, APAC investors continue to flock to Australia's cities. Seoul has slipped out of the top six, with Hong Kong taking its place.

 

Investors' favorite industry is office (26 percent), followed by multifamily (21 percent) and logistics (22 percent). The preference for retail has decreased dramatically from the previous year (21percent to 12 percent). Logistics and multifamily are two sectors that have done exceptionally well this cycle due to shifts in technology and demographics, and investors based in the Americas have a clear preference for them. Investors in EMEA and APAC are more interested in the office and retail markets.

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