Global real es­tate mar­ket to get in­vest­ment worth $1 tril­lion in 2016

The sur­vey also cap­tured neg­a­tive sen­ti­ments aris­ing from volatil­ity in China’s stock mar­ket at the time, although 2016 is ex­pected to be a risk-free year.

Accommodation Times - - Real Estate Investments -

In a sur­vey done by global real es­tate con­sult­ing firm CBRE, it is said that the global real es­tate mar­ket is pegged to cross $1 tril­lion in 2016, 6 per­cent higher than in 2015 and In­dia’s prop­erty sec­tor is likely to ben­e­fit out of it too. The firm men­tioned this in The Global In­vestor In­ten­tions Sur­vey 2016 re­port, re­leased by them.

CBRE, said in­vestors are likely to re­main ex­pan­sion­ary in 2016, with more than $1 tril­lion of planned ex­pen­di­tures an­tic­i­pated to en­ter global real es­tate mar­kets. “We be­lieve that 2016 will be an­other ac­tive year for the global real es­tate in­vest­ment mar­ket, with cap­i­tal flows 6 per­cent higher than in 2015. There is more than $1 tril­lion of cap­i­tal tar­get­ing real es­tate in 2016,” said CBRE’s global pres­i­dent, cap­i­tal mar­kets, Chris Lude­man.

In­dia’s real es­tate is also likely to get some ben­e­fit, al­beit a small share, of the global real es­tate in­vest­ment funds, the re­port added.

“The year 2016 prom­ises to be a good one for the in­dus­try and it is ex­pected that In­dia’s real es­tate sec­tor will get some ben­e­fit, al­beit a small share, of the global real es­tate in­vest- ment funds,” said CBRE South Asia chair­man Anshuman Mag­a­zine.

Ac­cord­ing to the sur­vey, Lon­don, Los An­ge­les and Syd­ney have emerged as the most sought af­ter real es­tate des­ti­na­tions for 2016. The sur­vey, con­ducted be­tween Jan­uary and early Fe­bru­ary this year, asked in­vestors how much cap­i­tal they would de­ploy in real es­tate pur­chases this year and a ma­jor­ity (82 per­cent) in­di­cated that their buy- ing ac­tiv­ity will in­crease, or re­main the same, com­pared to 2015.

The sur­vey also cap­tured neg­a­tive sen­ti­ments aris­ing from volatil­ity in China’s stock mar­ket at the time, although 2016 is ex­pected to be a risk­free year.

“In­vest­ment strate­gies are shift­ing amid con­cerns about the health of the global econ­omy. Not sur­pris­ingly, 2016 looks likely to be a ‘riskoff’ year, with in­vestors re­port­ing they are more fo­cused on core as­sets and less likely to seek sec­ondary, value-add and al­ter­na­tive op­por­tu­ni­ties,” said Lude­man.

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