- The CBRE Investor Intentions Survey was first conducted in Europe
in 2010 and was extended to Asia Pacific and North America for the first time
in 2014. Surveys of the three regions were carried out online from 27 January
to 24 February 2014 with a total of 743 responses globally spread across a
range of different types of real estate investors including fund managers,
property companies and institutions.
- Investors from all three regions say they will remain active in
2014. Two-thirds of respondents said they expect their purchases to exceed
their sales this year and that they will engage in stronger purchasing activity
compared to last year, when total global real estate investment turnover surged
25% y-o-y to US$560 billion*, a record annual total.
- Investors from all three regions have a strong interest in the
industrial and logistics sector. This was the only sector where investor
intentions outpaced the actual percentage of capital invested in 2013. The
global growth of e-commerce and shift to consumption-led demand in Asia are
supporting interest in this sector and bringing about structural changes in
- The greatest concern among investors is whether they can access
enough assets at prices that still make financial sense. When asked to name the
biggest obstacle to acquiring assets, the vast majority of responses related to
issues about the availability of assets (29%) at the right price (30%). These
obstacles are symptomatic of crowded and keenly priced markets.
- Investor responses in the three regions point to a higher risk
appetite for secondary assets (45%) in 2014. The common trends in investor
behavior globally reflect the fact that real estate is becoming a global asset
class and that capital is increasingly mobile. Core markets are becoming more
competitive and expensive, prompting investors to target a wider range of
opportunities in their search for value.
- Investors in the three regions identify a variety of different
threats to their respective markets.
- In North America, the fears are on the financial side and relate
to the tapering of quantitative easing and potential interest rate rises. Bond
markets have already priced in the end of quantitative easing but commercial
real estate investors are still wary.
- In Asia Pacific, the fears relate to the real economy and worries
about a slowdown, driven presumably by issues surrounding the sustainability of
growth in China.
In Europe, investors
remain worried about the potential impact on future growth as a result of
further government spending cuts. However, the possibility of a pricing bubble
is by far the most common concern.
Download the Global Investor Intentions Survey | 2014