Global investment to hit $1.39trn and beyond, Atlas Summary

Global real estate investment volumes are expected to hit $1.39trn in 2017, according to Cushman & Wakefield’s The Atlas Summary 2017.

Of this amount, Asia Pacific accounts for 44% ($611bn), followed by North America (34%; $470bn) and EMEA (22%; $307bn).

The annual report, which analyses and predicts future trends in real estate investment activity across the world states that investment demand for real estate will continue to be active in 2017, driven by new capital sources and more investors seeking global diversification.

In addition, demand is expected to outstrip supply of real estate available for investment, a dynamic that is likely to keep pricing elevated well into the foreseeable future.

David Hutchings, head of investment strategy for capital markets, EMEA said: “The real estate investment market will be even more dynamic in 2017/18, with capital sources changing and targets evolving as opportunities emerge across the world. Many investors continue to chase income and a return on their capital, but for some others, it is simply a return of their capital which is of greater concern in an uncertain and changing world.

“Perceptions of risk and attitudes towards pricing are very different between these two groups but given the uncertain economic environment, global diversification in real estate will remain a favoured strategy.”

The Atlas Summary 2017 report also highlighted that core cities will remain the focus of many investors as they seek to ride out risk and build liquidity and longevity into their portfolios.

However, it also predicted tier two markets in leading countries will be in demand from investors seeking growth or higher returns. More ‘alternative’ asset classes such as retirement homes, data centres, urban logistics and leisure will receive strong demand investors looking to diversify their portfolios.

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