New report by Colliers International reveals 98% of investors plan to expand their portfolios
Colliers International reveals investors are largely
optimistic about a market rebound in 2021, according to its new
Global Capital Markets 2021 Investor Outlook. Colliers’ research
anticipates a 50% surge in investment activity in the second half of
the year, pointing to a broad-based renewal of confidence in the
property market as a result of recent vaccine developments and
continued government stimulus. Baltic markets are not an exception.
Fortunately, we expect there will be opportunities both for those
who will want to play it safe and for those who want to use the
momentum to get accelerated returns.
“Based on Colliers
global analysis, strategic plans in the property sector remain intact.
With a massive volume of equity raised globally and the need for real
assets, global investors are eager to deploy pent-up capital and
pursue opportunities during the year,“ said Angela Kolesnikova,
Head of Investment Department at Colliers Baltics. “Colliers
expects to see movement up the risk curve this year, with global
investors exploring all types of assets from senior care homes to
public infrastructure projects. Baltic investors will also need to
work on their risk tolerance if they want to stay competitive for
prime assets this year, especially in industrial segment.“
The report, which drew nearly 300 respondents including major institutional investors, listed property companies, sovereign wealth funds, private equity funds, family offices and third-party money managers, indicates 98% of investors across all regions aim to expand their portfolios, with approximately 60 per cent looking to expand by more than 10%. Furthermore, 67% of survey respondents in EMEA and 88% of those in the U.S. are planning their next investment as early as the first quarter of 2021.
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.
