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Colliers: Global property investors ready to make waves

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With economic conditions in many parts of the world the most favourable they've been in recent years, it's a ripe time for property investors in many countries to be active.

This is reflected in the 2015 Global Investor Sentiment Report, which international real estate giant Colliers recently published. Surveying the opinions and sentiments of more than 600 investors across the globe, the annual study looks at the levels of confidence, activity and other trends in the world's key property investment markets.

In this year's edition of the survey, one of the main highlights was a general increase in confidence around the world, with investors signalling heightened intentions for next year.

"The 2015 Global Investor Sentiment survey confirmed many of the trends we have seen recently - capital is moving around the globe at a pace not previously witnessed as investors seek yield, while diversifying to manage risk," explained Brian Ward, Colliers International's president of capital markets and investment services - Americas.

"In many markets, there remains a healthy spread between cap rates and the cost of capital, which continues to fuel optimism and demand for product, but also helps to insulate against broader risks to the markets should interest rates rise later in 2015."

So what are the main talking points from the 2015 edition of the survey? We take a look at the main findings globally and in some of the individual markets.

Worldwide, confidence is high

Colliers' survey revealed that there is generally a very high and positive level of confidence in the global property investment market. In spite of mixed economic performance around the world, the majority of investment professionals indicated they are prepared to up their investment volumes - and also take on more risk - over the next 12 months. 

However, one of the most salient findings from the survey was that investors are taking on an increasingly local outlook in terms of their ventures. Three-quarters (74 per cent) of respondents said they intend to only invest in their macro-region in the next 12 months.

Additionally, just 14 per cent said they plan to allocate more than half of their investment outside their home region.

In light of this context, what are some of the main trends the survey picked up in key regional markets around the world?

Australia and New Zealand

The ANZ property investment market was revealed to be one of the most positive in this year's edition of the survey. According to Colliers, 83 per cent of respondents expect volumes in this region to go up next year - making them the most optimistic in the world.

In addition, more investors in the Pacific are expecting investment conditions to improve (60 per cent this year, compared to 35 per cent in the last survey).

Asia

While optimism has taken a hit in Asia, this apparently hasn't stopped investors in the continent from increasing their planned activity for the coming year.

The survey found that just 39 per cent of Asia investors believe investment conditions will improve over the next 12 months - down from 62 per cent last year. However, an encouraging three-quarters (73 per cent) said they expect investment volumes to rise in 2015.

USA

Confidence was also high in the US market, with 80 per cent of respondents here believing investment conditions will improve or remain stable in the next 12 months.

More than three-quarters said they intend to raise their level of investment in their portfolios during this time period, with none expecting a reduction. Additionally, more than half (57 per cent) felt property yields will remain stable next year - despite the expectation that interest rates will go up.

UK

The survey found that London, along with other "gateway" cities around the world such as Paris and New York, continued to be a hotspot of investment attention.

On the back of a strong economy and positive expectations, the majority (85 per cent) of investors in the UK are expecting volumes to increase, Colliers revealed.

Date Published: 07 Dec 2014
Category: General News

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