Based on new capital raised, including debt and equity financing, Investors are looking to spend as much as $435 billion in real estate investments globally in 2017. The 2nd highest amount on record!
With a maturing Real estate market, Investors are focusing on spending the funds they have raised. Demand will outstrip supply in many key markets, pushing down yields and challenging investors.
1st US maintains crown as best market for most investors for 2017.
- Institutional investors clamor for a piece of the US real estate pie, hiking up their allocations to this niche to the highest ever. Offshore investors are also interested in the “high-quality” US real estate assets. Chinese investors favor leading US cities such as New York, Chicago, San Francisco, Washington, Los Angeles, Seattle, and Boston.
2nd China, which is mostly attracting capital from its domestic funds.
- Overseas funds, including US funds, are also looking for a base in China, so as to benefit from the country’s rapid economic growth. We see more capital targeting Asia than EMEA, putting it second to the Americas, reflecting the maturity and growth of opportunities across the region as well as the prospects for attractive returns.
3rd UK is the third most sought-after market for real estate
- Capital will be invested in that country as investors watch for the outcome of the Brexit negotiations coupled with price declines. The decline in the equity slated for the EMEA region is tied to the strong dollar, considering that most of the funds targeting Europe report in either Euros or pounds.
4th Germany will benefit from some of the capital that avoids the UK and looks to Germany’s ‘safe haven’ reputation and stable economy.
- Nearly $80 billion in equity capital will available for the Americas, for the first time greater than the $72 billion equity capital available for the Europe, Middle East and Africa (EMEA) region.
