Our third annual Global Investor Outlook report explores investor sentiment, asset class preferences, opportunities and strategies in 2023. Our findings are based on numerous in-depth interviews with our Capital Markets experts and survey of more than 750 investors around the world.
After a volatile year of geopolitical tensions, economic shocks and uneven monetary policy, Colliers anticipates the process of stabilization of the global real estate market to take hold by mid-2023. Investors can expect big differences in how the reset plays out across sectors and markets next year.
Key Global and EMEA themes:
The journey so far suggests stabilisation of the global real estate market to take hold by mid-2023. The velocity and timing of this process, incorporating a repricing and subsequent recovery will differ across markets and sectors, creating multiple investment opportunities.
Pockets of opportunities emerging amidst the current reset as the negative impact on capital values creates flux among funds and assets. Investors with refinancing requirements, funds reaching termination and arbitrage across the listed sector will create opportunities for investors across the capital stack.
Core assets to prevail but non-core will be a source of some distress. 60% of global investors prefer asset classes in established, larger cities, but changing demographic and economic realities are luring them to second- and third-tier growth cities.
Understanding and managing rising cost pressures is critical. 85% of investors said rising construction costs have the most negative influence on their ability to pursue their investment strategies, followed by higher asset operating costs (77%). This ties into the primary challenges cited by investors for the year ahead, with 78% ranking energy supply/costs as their top concern.
Sustainability is driving decisions as the threat of stranded assets looms. Nearly 17% of investors are activating a capital improvement, disposal or acquisition strategy that incorporates ESG considerations, with 45% set to dispose of up to 20% of assets under management (AUM) over the next 5 years.
For more insights and a detailed discussion on capital markets trends and investment opportunities, talk to a Colliers Capital Markets expert today.