The study reveals that these figures are similar to those of the previous year and put Spain at position 13 in the ranking of principal destinations for real estate capital, ahead of countries like Brazil and Italy.
At the global level, this real estate services company calculates that the volume of capital added for real estate investment in 2017 will go up to 435,000 million dollars, a slight decrease compared to last year’s maximum, though the second highest total recorded since 2009.
The series of publications Great Wall of Money, which are presented yearly at the MIPIM international fair, follow the footprint of the volume of capital recently invested, both in the form of debt as in equity, directing real estate on the global level. The global level has gone down 2% in comparison with 2016, the first fall since 2011. However, current levels are the second highest recorded, reflecting the extraordinary increase of capital entering the sector during the present cycle
Capital invested in the EMEA region will be down 9%, at 130,000 million dollars, while that of the America region will increase 2%, to 173,000 million. In turn, Asia will also see a slight increase at 132,000 million, more than the EMEA zone.
According to Elisabeth Troni, in charge of EMEA Research & Insight at Cushman & Wakefield, “with the large volume of money directed towards the real estate market, at near record levels, investors should remain focussed but agile. We are expecting a 2017 notable for consistent competence in the allocation of capital and the tracking of attractive opportunities”.
In addition to new investment strategies, the opening up of new sources of capital from various parts of the globe are predicted, including countries like China, Malaysia, Taiwan and South Africa in the vanguard.
More concentrated investment strategies
Investors are concentrating more and more on strategies for a single country instead of spreading capital over several frontiers. Investments in one country now represent 61% of disposable capital, a rise of 55% over the last three years. According to estimates from Cushman & Wakefield, it is likely that the United States will remain the leading market for investment in 2017. Although activity slowed in 2017, actual volume of capital remains high, and many investments maintain a low resource allocation in the sector.