Investors largely are optimistic about a market rebound this year, according to a report released this week by professional services and investment management firm Colliers International Group.
Colliers’ research anticipates a 50% surge in investment activity in the second half of the year and points to a broad-based renewal of confidence in the property market as a result of recent vaccine developments and continued government stimulus.
The report also found that approximately 98% of investors across all regions globally are looking to expand their portfolios, with 60% seeking to increase by more than 10% and nearly a quarter (25%) looking to expand by more than 20%. Approximately 88% of U.S. investors polled plan to make their next investment as early as the first quarter.
Colliers surveyed almost 300 institutional investors, listed property companies, sovereign wealth funds, private equity funds, family offices and third-party money managers for the report. Their responses reveal that investors are sitting on substantial amounts of dry powder and anticipate the rebound will gain serious speed in the second half of the year as concerns over global travel begin to abate.
Many investors also noted that they predict a growth in demand for senior living assets as a result of broader structural shifts based on an aging population. The unique regulatory and market dynamics of this sector will further drive the need for investors to seek out dedicated local alliances, platforms and partnerships to access new opportunities, the publication noted.
“Based on our global analysis, which gives us a bird’s-eye view of investors’ interests and expected appetite, longer-term tailwinds in the property sector remain intact,” said Tony Horrell, head of capital markets globally at Colliers International. “With a massive volume of equity raised globally and the need for real assets, investors are eager to deploy pent-up capital and pursue opportunities during the year. We expect to see movement up the risk curve this year, with investors exploring all types of assets from senior care homes to public infrastructure projects.”