Korean institutional investors searching for higher yields abroad
Korean institutional investors are increasing their investment in foreign real estate, and are increasingly major buyers in the global market. Considering the increasing scale of outbound investment, as well as the diversification of investor types, Colliers expects domestic investors will continue increasing their investments in overseas real estate.
Since competition for securing high-quality foreign real estate is intensifying, Colliers expects that investors will consider diversifying to Eastern and Northern Europe, away from the US and Western Europe. We recommend domestic institutional investors diversifying their current portfolios, focusing on core office buildings in developed countries, also expanding investments in the logistics and residential sectors. To manage their risk, investors should monitor their foreign exchange exposure as well as movement in US benchmark interest rates which can affect investment yields.