Investors Drawn to Alternatives as Competition for Prime Assets Heats Up – Infographic

PLAY OF THE LAND

Buoyed by low interest rates, falling bond yields and a growing, albeit still volatile, global economy, major real estate investors are in an upbeat mood, with more than half planning to increase their investment activity in 2015, according to CBRE’s Global Investor Intentions Survey 2015.

London remains the most preferred city globally among investors, but second-tier and smaller cities like Madrid, Dallas and Seattle are gaining popularity.

CBRE predicts that capital flows will increase 10 to 15 percent this year as a result.

London remains the most preferred city globally among investors, but second-tier and smaller cities like Madrid, Dallas and Seattle are gaining popularity.

Investors are also broadening their horizons, with 38 percent of those surveyed planning to buy outside their home region. This includes many U.S. investors keen to take advantage of the improved purchasing power of the U.S. dollar.

While investors still prefer office and industrial properties, the intense competition for these assets is leading investors to focus on alternative sectors. Debt products like CMBS are the most appealing of these, while aging populations and growing interest in higher education have steered investors’ capital towards retirement living and student living, respectively. Investors’ interest in these sectors will continue in 2015.

Blueprint_Investment Alt Sectors Infographic_FINAL_050608

Click here to access the complete Global Investor Intentions Survey 2015.

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