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The growth of investment activity in the real estate market: an overview

November 8, 2021

How the growth of investment activity affects various segments of real estate

Colliers International experts have analyzed the market and highlighted its prospects. According to them, the growth of investment activity will continue in the future, and in total for the current year it will be 50%. In general, the trends that are observed now, allows making an optimistic forecast for the near future.
A powerful leap for economic recovery was observed after the appearance of a vaccine and the procedure of vaccinating the population. Investment activity has increased in a number of segments.
Colliers International has conducted a global analysis of the real estate market and found that in the long term interest from investors will only increase. It should be understood that around the world there is a huge amount of raised capital, and the demand for real estate assets continues to grow. Therefore, investors are required to restore activity, but with current trends in mind. Businessmen are now scrutinizing segments where it is more profitable to invest. They still avoid making any sudden moves and are cautious about all projects. So far, there is interest in facilities such as nursing homes, health care facilities and public infrastructure.
Colliers International experts conducted a survey in which 300 respondents took part. Among them were various funds, institutional investors, family companies and other market participants. As a result of the survey experts found that 98% of investors intend to expand their portfolio by adding new assets. 60% want to increase their assets by 10%. In addition, more than 67% of respondents plan to expand their activities in Europe, Africa and the Middle East, and 88% continue to invest in the U.S. market.

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The most sought-after investment option is Class A office space. Companies with international capital are paying attention to the premises in major financial centers, which include London, New York and Sydney. Important points in today’s reality are a high level of technical equipment, as well as providing measures to maintain the health of employees.
Positive dynamics is observed in the segment of logistic real estate and housing. These markets occupy leading positions among the most sought-after assets. Demand for them continues to grow, which means that investors need to focus on expanding supply in different regions. The optimal solution in this case would be to work with local companies to create partnership projects.
According to the forecast from Colliers International, to help in the recovery of the hotel real estate and problematic commercial sites can be helpful, introducing a system of discounts for their purchase. In the future, such assets can be restructured, carefully thinking about such a scheme of profit in the future.
Do not also forget about the alternative segments, which are becoming extremely popular, which include data centers, research centers and others.