This report is an in-depth exploration of investor sentiment, strategies and the forces set to shape global real estate markets in 2021. Our findings draw on two main sources: a comprehensive global survey of real estate investors, and interviews with Colliers Capital Market leaders.
Colliers anticipates a 50% surge in global investment activity in 2021 as global real estate markets rebound.
Furthermore, the survey results indicate that 98% of investors across all regions aim to expand their portfolios this year, with approximately 60% looking to expand by more than 10%.
Additional key takeaways from the Colliers Global Capital Markets 2021 Investor Outlook report include:
- Top-tier city offices remain a primary asset target. Investors with international capital find the scale and liquidity of the office sector in major commercial hubs such as New York, London and Sydney appealing. Having office assets that meet health, sustainability and technical benchmarks is important to investors.
- Logistics and living sectors are thriving. Both sectors were among investors’ top three choices across all regions. Intense demand for these assets will require investors to broaden their geographic focus and build portfolios through joint venture platforms and local partnerships.
- Opportunities to repurpose discounted retail and hospitality assets. Investors are expecting to see pricing discounts of over 20 per cent in these sectors. They represent a rare opportunity to acquire core and distressed assets for ambitious repurposing initiatives.
- Alternatives, platforms and partnerships are playing a bigger part. Rising demand for alternative assets such as data centres, senior living and life science assets reflects broader structural shifts amplified by the pandemic.