Global real estate investment volumes are expected to hit USD1.39 trillion in 2017. Of this amount, Asia Pacific accounts for 44% (USD611 billion), followed by North America (34%; USD470 billion) and EMEA (22%; USD307 billion). The annual global investment forecast report, The Atlas Summary 2017 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.
The Atlas Summary 2017 report also highlighted the following:
- Many investors will remain heavily focused on core cities in 2017 as they seek to ride out risk and build liquidity and longevity into their portfolios.
- For investors seeking growth or higher returns, new areas will be in demand and this may include new risks in core markets, Tier 2 markets in leading countries or new and selective geographical targets including some emerging markets.
- Stronger interest in new segments and styles of investing in all regions is set to grow as the typical investment portfolio becomes more diversified to reflect changing trends in demographics, technology, mobility and urban function. Some of these new asset classes include those with a residential focus (e.g. retirement homes), data centers, urban logistics and leisure.
“Asia Pacific remains a beacon for emerging market prospects and a hotbed for development opportunities.”