Global Real Estate Market To See $1-Trillion Investment In 2016

The global real estate market is expected to witness an investment of more than $1 trillion in 2016, says Global Investor Intentions Survey, 2016, conducted by real estate consultant CBRE. The report suggests that investment in the real estate sector across the world in 2016 will be six per cent higher than that in 2015.

The survey, conducted between January and early February this year, asked investors how much capital or gross acquisitions they would distribute in real estate purchases. Nearly, 82 per cent of the respondents indicated that their buying activity in 2016 would remain unchanged from 2015. The negative sentiment arising from volatility in the stock market in China were also taken into account.

According to the findings of the survey, North America is considered the most sought-after destination for real estate investment, followed by Western Europe. In the Asia-Pacific (APAC) region, Sydney and Tokyo are the most popular destinations. Among the top five cities globally, two are in Australia – Brisbane and Sydney. In Europe, London topped the list, followed by Madrid and Paris. 

The respondents also said that they were seeking to invest outside their home region. Most of them belonged to APAC, especially Singapore and South Korea.

In the division of asset classes, the most popular property type globally is office, at 30 per cent, followed by retail and multifamily assets, at 21 per cent and 20 per cent, respectively. 

CBRE survey also indicated a surge in the Indian real estate market. However, it would be a small share in the global real estate investment, CBRE South Asia Chairman & Managing Director Anshuman Magazine said real estate would be an important asset for both domestic and foreign investors. He added that the year 2016 would be a good year for the global real estate industry and the Indian market would also get its benefit.