Colliers International Group said investors are largely optimistic about a market rebound in 2021.
According to the firm’s new Global Capital Markets 2021 Investor Outlook a 50% surge in investment activity is envisaged in the second half of the year, “pointing to a broad-based renewal of confidence” in the property market as a result of recent vaccine developments and continued government stimulus, the firm said.
“Based on our global analysis, which gives us a bird’s-eye view of investors’ interests and expected appetite, longer-term tailwinds in the property sector remain intact. With a massive volume of equity raised globally and the need for real assets, investors are eager to deploy pent-up capital and pursue opportunities during the year,” said Tony Horrell, head of capital market, global at Colliers International.
“We expect to see movement up the risk curve this year, with investors exploring all types of assets from senior care homes to public infrastructure projects,” said Horrell.
98% of investors plan to expand portfolios in 2021
The report, which polled about 300 respondents, including major institutional investors, listed property companies, sovereign wealth funds, private equity funds, family offices and third-party money managers, indicates 98% of investors across all regions aim to expand their portfolios.
Approximately 60% are looking to expand by more than 10%. Furthermore, 67% of survey respondents in EMEA and 88% of those in the US are planning their next investment as early as the first quarter of 2021, the firm said.
The Colliers Global Capital Markets 2021 Investor Outlook report also found that top-tier city offices remain a primary asset target and investors with international capital find the scale and liquidity of the office sector in major commercial hubs such as New York, London and Sydney appealing.
Meanwhile, both the logistics and living sectors are thriving. Both sectors were among investors’ top three choices across all regions. Intense demand for these assets will require investors to broaden their geographic focus and build portfolios through joint venture platforms and local partnerships.