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Global real estate investments to hit $79 billion in 2021 – survey
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Global real estate is set to attract about €64.6 billion ($78.9 billion) in investments this year, with European real estate set to gain the lion s share of institutional investor commitments.
The 2021 Investment Intentions survey, published Wednesday by the European Association for Investors in Non-Listed Real Estate Vehicles, the Asian Association for Investors in Non-Listed Real Estate Vehicles and the Pension Real Estate Association, said institutional investors intend to put a minimum of €55.4 billion in assets into global real estate, with funds of funds expected to invest €9.2 billion.
Last year s survey indicated that a minimum of €98.1 billion of new capital was expected to be invested in real estate globally in 2020.
APAC real estate retaining investor interest 13 January 2021
The majority of institutional investors are planning to stick to their future investment plans for non-listed real estate in the Asia-Pacific region in the coming year despite the pandemic, according to a new survey.
The data has come from the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV), the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) and the Pension Real Estate Association (PREA) in the US.
Despite the turbulence of 2020, 77 per cent of respondents asked said that the coronavirus pandemic had not changed their investment plans in the Asia Pacific.
Global institutional investors are keen to invest in Asia Pacific real estate over the next two years to capitalise on the region’s strong market fundamentals, according to findings of a survey by Asian and European property investment groups.
Some 22% of the 99 survey respondents plan to raise investments in Asia Pacific property over the next two years, the Asian Association for Investors in Non-listed Real Estate Vehicles (ANREV) says in a statement on January 13.
That’s higher than the 16% who plan to raise investments in the US, and 13% in Europe.
The coronavirus pandemic “has not knocked the underlying fundamentals underpinning the growth of Asia Pacific’s real estate, nor the important diversification role the region plays in portfolios”, according to Amélie Delaunay, ANREV’s director of research and professional standards.
Amélie Delaunay, director of research and professional standards at ANREV, said that the index also reflected robust investment appetite in the asset class as it has a low correlation to traditional investment markets and is supported by low interest rates.
According to Argyle Capital Partners, the risk return profile proved in the index compared very favourably to Australian equity market investments and it suggested that patient investors were well compensated for the relative illiquidity of farmland investments.
“The majority of south-eastern Australia experienced average rainfalls in the calendar year to 30 September 2020 breaking down a prolonged drought since 2017,” the manager said.