These days, international real estate investors are putting their money where they believe it will not vanish overnight, such as the United States, Asia, and Western Europe. Colliers International's recent Global Investor Sentiment Survey came to this conclusion. Investors continually pursue homes in the same, "safe" markets, according to the survey, including London, Paris, Frankfurt, Hamburg, Munich, and New York. investment in qatar
"Investors from other regions have selected London and New York as major investment centers," the research reads.
"Investors will continue to focus on these markets in 2013, while keeping an eye on the impact of the U.S. election and the Eurozone's ongoing issues. London, Paris, and major German cities are among the most popular destinations.
The research claims that "From a worldwide perspective, investors have shown a significant preference for the office sector. The industrial sector rated first in the United States and Latin America, while shopping center investments grew in popularity in Australia, Canada, and New Zealand."
The poll received responses from around 500 real estate experts from the United States, Canada, Latin America, Asia Pacific, Europe, and the Middle East.
"Major investors are becoming more careful when selecting their investment destinations," Tony Horrell, CEO, U.K. and Ireland, Colliers International, stated in the research, highlighting the most noticeable development this year.
The overall trends we discovered while asking respondents about their financial strategy support this. They are more likely to look at chances in their own backyard first, and when they do look at overseas prospects, they are significantly more particular about the industries and industries in which they are interested."
"As tight lending standards persist and LTVs stay low," Horrell noted, "the poll also revealed that the availability and price of debt funding will remain an issue in a number of areas, particularly in EMEA."
This is allowing new lenders, such as insurance firms, to enter the market, as well as a comeback in the provision of mezzanine financing."
Through 2013, investment volumes in Western markets are likely to expand slowly and gradually, and core investment opportunities will become more difficult to come by as investors focus on just a few important regions.
Investors from Asia, Europe, and Latin America were the most likely to seek capital from outside their regions.
According to the survey, Asian investors obtained only 40% of their assets locally, with the United States (20%) and Western Europe (19%) providing significant capital.
The United States provides about a third of all funding in Latin America, with Western Europe supplying just under 15%. With about 78 percent of investment coming from within the country, Canadians are essentially self-sufficient.
Though many investors prefer to invest in their home markets, a quarter of them (about 25%) are venturing into international real estate. Western Europe is favored by international investors. In addition, some Asian investors are likely to look for property opportunities in Australia and New Zealand, which are closer to home.
The bulk of investors still prioritize wealth preservation and reliable income. However, investors in the United States, Asia, and Latin America are most likely to take on additional risk in the coming six months, according to the survey.
In 2013, most markets in Europe, the Middle East, and Africa (EMEA) will continue to struggle to secure finance, with specialised debt funds targeting better returns projected to experience increased activity.
Investors in Asian markets were found to be the most likely to take on greater debt, whilst investors in Latin America tended to avoid it.
"In 2013, we will see more new lenders and mezzanine funds to partially address the hole created by retreating major banks," Horrell says.
More broadly, 2013 will be a year of steady recovery, with modest rise in investment volumes as investors adjust to the new normal and sentiment improves."