The Colliers report, in which more than 300 investors from around the world participated, anticipates a 50% increase in investment activity in the second half of the year, pointing to a general renewal of confidence in the real estate market as a result of recent vaccine developments and continued encouragement from governments.
«Our global analysis, which provides us with an overview of investor interests and expected appetite, confirms very favorable prospects in the Real Estate sector in the long term. With a very high volume of equity available globally and the need to place it, investors they are eager to deploy their accumulated capital and seek opportunities throughout the year» says Tony Horrell, Head of Global Capital Markets at Colliers International. «We expect to see an upward movement in the risk curve in 2021, with investors exploring all types of assets, from residences for the elderly to public infrastructure projects».
From all the investors surveyed, among which are the main institutional funds, listed real estate and private investors, 98% indicate that their main objective of the year is to expand their portfolios. Furthermore, 67% of respondents in the EMEA Region (Europe and Middle East) say they are planning their next investment for the first quarter of 2021.
Conclusions from 2021 Investor Outlook report
World-class urban offices continue to be a priority investment objective. Investors priority is focused on sustainable office assets that meet current technical requirements to ensure employee health.
Logistics and residential markets appear in the top three investor preferences in all geographic regions.
Retail and hotel assets appear as an opportunity to deploy ambitious initiatives oriented to new uses. Investors expect to see price discounts of more than 20 percent in both sectors, the most affected by the crisis.
Alternative assets will gain market share. The growing demand for alternative assets, such as data centers, nursing homes, or health-related assets reflect structural changes even more amplified by the effects of the pandemic.
For his part, Alberto Díaz, Managing Director of Capital Markets at Colliers Spain points out: «the real estate sector is resisting the crisis and investors are prepared to increase their investment levels by 50% in 2021, focusing mainly on assets that have shown a more defensive, such as offices and rental housing, as well as those where demand has increased or the need for new developments has become evident, such as logistics, data centers or nursing homes».
«With regard to Spain, this new environment is a magnificent opportunity for local operators to form alliances and Joint Ventures with institutional capital for product development» - Alberto Díaz concludes.