Colliers International Global Investor Sentiment Survey October 2011
Global Investor Sentiment 2011 SurveyColliers International Global Investor Sentiment Survey P. 1
www.colliers.com Contents >4 welcome from James w. horne > 16 australia & new zealand > 32 middle east >5 a review of investor sentiment > 20 canada > 36 united states >6 the global picture > 24 europe > 40 about the survey > 12 asia > 28 latin america > 40 global research teamP. 2 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 3
Global Real EstateInvestment A Review of Investor Sentiment october 2011 Global economic conditions have changed significantly since the In this year’s survey, investors globally remain upbeat, still seeing > Global investors have become more > There was little change seen in access to > Around half of all global investors are prepared > Different issues were seen to impact regions last Global Survey of Investor Sentiment was undertaken in 2010. the market in the early stages of an upswing. In addition, far more aggressive in their expansion plans, with finance globally, though there was a significant to move out on the risk curve to achieve superior around the world. In the US, local economic more than 71% of investors now indicating easing occurring in the US and Canada. The returns. Investors in the US and Canada were health was seen as the biggest issue, while Consumer and business confidence is low in large parts of the investors compared to last year are looking at expanding their port- that they are likely to expand their portfolios cost of finance was also seen to have declined more risk-aggressive than other markets. political issues remain a concern in Canada. world and sovereign debt issues remain a significant risk factor folios. Easing credit conditions in the US and Canada are seen as a over the next six months. This compares in those markets, but to have remained stable Government policy was of concern to European in Europe and the US. Talk of a double-dip recession continues to positive, allowing for more confidence amongst investors in these the same time last year where just 60% in other regions. investors. Global economic health is impacting > Most investors have expansion plans over the indicated they planned to expand. upon investors’ confidence in Asia, Latin occur. Whilst towards the end of 2010, most economic commen- markets. While investors in Europe are concerned about govern- next six months, with the level higher than last America and Australia/New Zealand. tary was becoming more confident, this is not the case now. ment policies, investors continue to remain relatively positive about year. The biggest impediment is the supply of > Most investors believe that we are in the early “for sale” property. the performance of property markets. James w. horne Despite this, global capital real estate flows continue to grow, with stages of an upswing, with most believing that approximately 9,250 properties changing hands worth US$350 billion The survey was conducted from the 1st August to the 14th August it will hold steady over the next 12 months. eXecutive sponsor Global Investment during the first half of 2011, an increase of 30% over the same period in 2011. This was an interesting time given the US debt rating downgrade Services 2010. The real driver behind the result was positive growth within the on the 6th August, and the impact that this had on markets around America’s region, with the United States experiencing an increase of the world. An analysis was undertaken between the results from both 124% in the value of commercial property transactions in 1H 2011. Other before and after the downgrade, and overall it had limited impact on regions also saw investment growth, with the Europe and Middle East investors. It’s certainly a good sign for real estate globally. regions increasing by 21% to US$87 billion, while the Asia Pacific saw 12% growth over the year.P. 4 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 5
The Global Present 12 peakPicture 13%strategy > In Europe, Canada, US and Latin America, the current cycle Around half of all global investors feel more that they invested in their own regions. The supply of “for sale” property was the main71% of the investors that we surveyed compelled to move out on the risk curve to regions from which investors showed the Globally, most investors believe that we are in the early stages of an downsizing issue; however the ability to raise equity was upswingglobally indicated that they are most likely also seen as an issue. achieve superior returns. Canadian most interest in purchasing property over- upswing, with the largest group seeing the market at 8 o’clock. Thisto expand their real estate holdings over seas were Canada and Asia. can be described as being a situation where demand is rising, avail- 9 3the next six months, and 16% suggested > In Asia, economic uncertainty was seen as the ability and vacancy is falling, and headline rents are on the increase.that they were somewhat likely to do so. greatest risk, above the supply of “for sale” “More than 71% of investors globally For each region, unique trends emerged: This is a similar place to where investors saw global markets in 2010.Just 6% stated that it was unlikely that property. indicated that they are likely to expand > In the Middle East, respondents showed a There are some regional differences. The highest number of respon-they would do so. their portfolios over the next six strong preference for hotel and residential 37% > In Australia, the ability to raise new equity was dents in Europe, Canada, Asia, Australia and the US are at 8 o’clock, in months.” property over other asset classes.Investors see a lack of supply of “for sale” seen as the biggest impediment to expansion. early upswing. In the Middle East, the highest number of respondentsproperty as being the main impediment to their > Office assets in London, Paris and Hamburg were at 5 o’clock, so in late downturn. Investors in Latin America 10%expansion plans, with almost 50% of inves- and US investors are more aggressive, with were the main acquisition targets for European were the most pessimistic, seeing the property cycle at the peak of investors. German retail was also highlighted. 13%tors stating that this was a concern. Access to 64% and 60% respectively indicating that the market and heading into early downturn. riskfinance remains an issue with almost 22% of they were more risk-aggressive compared toinvestors. Over a third of respondents target an internal six months ago. > In Canada, Toronto was the main target for rate of return (IRR) of between 5% and 10%. acquisition, although investors did show renewed interest in global markets comparedThe main deterrents for expansion differ Over 40%, however, have a target IRR of over to last year. troughacross regions as follows: 15%. Investors in the Middle East and Asia buying property had the highest target IRR, with more than 6> In the Middle East, political risk was seen as Despite high levels of global capital flows, > Despite investing primarily in their own equally restrictive of expansion plans as the 75% of investors in these markets targeting the majority of investors surveyed indicated regions, investors in Latin America showed a supply of “for sale” property. an IRR of more than 15%. strong appetite for European assets. Continued on page 8.P. 6 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 7
15.9% are somewhat likely Future 6.1% 12 How likely are you to 70.7% are unlikely are most likely peak expand your portfolio in the next six months? 7.3% are possibly 17%> For Asian investors, Beijing and Shanghai cycle in 12 months divest by European and Canadian investors. of access to credit over the past six months. a regional level, higher levels of investors office assets remain the target for acquisition Asian and Australia/New Zealand inves- There was however, minimal difference in Europe, the Middle East and Australia/ On average, the greatest number of respondents globally believes downsizing with Indian residential a close second. upswing tors are more likely to divest office property. between those respondents who believed New Zealand believe that there has been no that our markets will remain at 8 o’clock. The second greatest num- it had improved, and those who saw it has change to the cost of debt. In Asia and Latin 9 20% 3> In Australia/New Zealand, office assets in ber sees the market as being in late upturn, i.e. at 10 o’clock. Sydney, Melbourne and Brisbane remain worsened. America, the cost has increased, while in the preferred acquisition targets. Melbourne “Around a half of all global investors Regionally, the Middle East, Europe, Asia, Australia/New Zealand and Canada and the US, the cost has declined. office was seen as having better returns in feel more compelled to move out the US, all continue to see the market in early upswing, at 7 o’clock or 8 By region, the following trends emerged: the short-term, with Sydney providing better The improvement in access to and cost of o’clock. Investors in Canada believe that the market will have moved to 27% long-term potential. on the risk curve to achieve superior > A relatively high proportion of investors in credit for US and Canadian investors par- late upturn, while Latin America is still at the peak of its cycle. returns.” Europe, the Middle East, Latin America and tially explains the higher levels of risk that Australia/New Zealand saw no change to> In the US, the vast majority expressed a access to credit. these investors are willing to take. 10% desire to buy property domestically, with a focus on California, Texas, New York/New In the US, US retail was listed (particularly Globally, half of all investors believe that Jersey and Washington. From an overseas > The majority of US and Canadian investors perspective, Canada, Australia and Brazil Florida), while more robust markets such as loan-to-value ratios have remained constant stated that access to credit had improved. were also highlighted. New York office were also cited, suggesting over the past six months. On a regional level, a degree of profit-taking may be emerging. > A very high proportion of Asian investors this was also consistent for all areas, with stated that access to credit had tightened. the exception of Asia, where investors saw a decline, and in the US, where they saw an troughselling property finance More than 40% of respondents believe increase. 6In terms of divestment, retail was frequently Globally, the largest group of respondents Continued on page 10.highlighted as a category from which to believed that there was no change to ease that the cost of debt has increased, while 30% believed that there was no change. AtP. 8 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 9
australia & new zealand 35% middle east 40.2% 30.5% How risk agressive is canada united states 50% no change latin america 60% How is the cost of debt increasedyour region compared 64% 58% compared to January 2011? to six months ago? 29.3% decreased europe asia 43% 22%general sentiment rental growth will exceed the rate of infla- > In the Middle East, it is because there is limited decrease. Across regions, investors in Asia, > In Canada and the Middle East, local political outlook Europe and the US, however continued prob- remains an issue indicating that investors are supply, high demand and growth potential. issues were seen as the main influence. tion, while investors in Europe, the Middle Australia/New Zealand and Latin America lems in these markets remain of concern. still interested in acquiring property.The majority of respondents globally (70%) Despite unsettled economic and political East, Canada and Latin America believe believe that there will be increased demand.believe that the pricing of commercial real > In Canada and Latin America, high demand > Government policies were seen to impact conditions around the world, investors in In the Middle East, most investors believe that growth will not exceed that rate. Asian In comparison, investors in other regionsestate has increased too fast, too quickly. was seen as the major influence. investors in Europe. real estate remain upbeat about the market, “In the US and Canada, cheaper and that the market will be in early upswing and US investors were evenly divided as to believe there will be recentralisation, withOn a regional level, only investors in the with most seeing it now in the stage of early within 12 months. Local political issues how- whether rental growth would or would not lower levels of demand for suburban office easier access to debt was seen asMiddle East and Australia/New Zealand > In Asia, it was seen that better returns from ten upturn. Different factors are driving this ever remain a concern and are expected tobelieved that this was not the case. exceed inflation. years ago was the main factor influencing value. buildings. “At a global level, political issues and confidence, however. There are some com- a positive and is leading to more have some impact on real estate markets. In terms of the value of real estate com- At a global level, political issues and prop- property market conditions were also mon themes across regions. confident investors in this market.” > In the US, limited supply was seen as the main highlighted as issues impacting target pared to ten years ago, most respondents erty market conditions were also highlighted“Globally, half of all investors influence. In the US and Canada, cheaper and easier globally believe that it is more valuable markets over the next 12 months.” Government policies remain of greatest con- believe that loan-to-value ratios access to debt was seen as a positive and today. The main reason why is that there is cern to European investors, however despite Obsolescence is seen as a major issue for “Obsolescence is seen as a major is leading to more confident investors in have remained constant over the higher demand for assets, as well as better > Global economic health was a key issue economic issues in this market, investors investors, with almost three quarters stating this market. Overall, investors in this mar- past six months.” returns relative to other investments. issue for investors, with almost three in Asia, Latin America and Australia/New remain upbeat with most seeing the market that it is of greater concern than it was ten Zealand. ket were more risk-aggressive than other quarters stating that it is of greater in early upswing. On the whole, this is a sentiment shared years ago. This was also consistent across regions, with this likely to be a result of theForecast rental growth was not expected concern than it was ten years ago.” freeing up of debt. amongst all investors except in Europe and all regions. > Local economic health was a key issue in the US. In Latin America, investors were overall moreto exceed the rate of inflation over the Australia/New Zealand, where they believe pessimistic, with many investors believ- In terms of demand for suburban office, In Asia, Latin America and Australia/Newnext three to five years by 60% of global that this is not the case. The reason as to ing that they were at the peak of the market. 40% of global investors believe that there as issues impacting target markets over the Zealand, global economic health remains ainvestors. On a regional level, inves- why it is more valuable on a regional basis is Nevertheless, supply of “for sale” property will be an increase over the next ten next 12 months. By region, the following dif- concern. These markets have overall beentors in Australia/New Zealand believe that as follows: years; while a third believes there will be a ferences were outlined: less impacted by sovereign debt issues inP. 10 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 11
regional author regional authorAsia dennis yeo managing director Investment Services brett Jensen account manager Osaka Asia hong kong strategy Among the respondents, the largest group is those anticipating tar- get IRR (Internal Rate of Return) in the range of 15–20%. Individual“Asian investors largely prefer Looking ahead into the next six months, Asian investors remain keen investors would anticipate over 25% IRR in the case of some emerg- to expand their portfolios. In the survey, the largest group of Asian China as the prime location investors (65%) expected to expand their property portfolios. This ing markets. for investment assuming figure was lower than the 73% registered in 3Q 2010. The next larg- buying property est group of respondents, at 23%, are somewhat likely to grow their that real estate opportunities, portfolios during the same period. main targets ranging from residential and However, 35% of the respondents said economic uncertainty is the key Regarding the potential targets for acquisitions, the most popular office to logistics, arise for concern while 31% mentioned that the supply of property “for sale” is sectors are office, residential and industrial/logistics. In China, office another key obstacle. A minority of 12% mentioned that the availability assets in the first-tier cities such as Beijing and Shanghai remain development.” their favourites. In India, residential real estate is the popular sector of debt financing is the key determinant. Since the availability of credit for acquisitions. Both institutional investors and property companies for real estate investment is getting tight, individual investors believe that it is a good time to invest in real estate through debt. aim to acquire industrial/logistics assets in Singapore. for development risks Asian investors largely prefer China as the prime location for invest- ment assuming that real estate opportunities, ranging from residen- Asian investors are now more risk-averse than in the past six months. tial and office to logistics, arise for development. However, residential A significant portion of Asian investor respondents (77%) expressed and office are the two more popular sectors. In addition, office devel- their intention to stay put on their risk curves. The remainder are going opment opportunities in Tokyo, Sydney and Mumbai look interesting. to take on more risks to achieve superior returns.P. 12 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 13
12 12 peak peak 11% 11% 15% 8% are unlikely 15% 15% How likely are you to On average, what stage of On average, where do you 65% the occupational cycle do anticipate the occupational expand your portfolio in are most likely downsizing downsizing upswing upswing 9 18% 3 9 19% 15% 3 you believe your Asia to be cycle in Asia will be in 12 the next six months? 23% in currently? 19% months? 19% are somewhat likely 11% 16% 15% 4% 11% are possibly trough trough 6 6Last but not least, individual investors are Shanghai, Singapore, India and Australia. and residential assets in China and Hong Looking ahead, Asian investors are generally ratio decreased over the past six months. A property company based in Singapore owning older more obsolete commercial real markets in the next 12 months notwithstand-targeting the logistics sector in Indonesia. However, investors would stick to the tra- Kong in the next 12 months. optimistic about the occupational cycle since There was an equal percentage (23%) said that the change is obvious since real estate is a bigger concern today than ten ing the general optimistic outlook on the ditional spots (i.e. China, Hong Kong and they anticipate the cycle will forge ahead of people saying either no change or an estate capital values are now much higher years ago. On the supply side, older com- region. The major ones include the uncer-for short-term A Hong Kong-based private investor said, Singapore) in search of retail opportunities to 10:30 (i.e. the full upswing of the mar- increase. than before. Other fundamental reasons are mercial assets are challenged by competitive tain global economic growth, geo politicalIn addition to China residential, the office “The residential sector in Hong Kong is chal- over the long-term. ket) in the next 12 months. However, 28% of rising demand from a young population and new developments equipped with modern upheaval, the threat attributed to sover-sectors in India, Tokyo and the US are lenged by over-valuation in the short-term.” A private investor based in India mentioned them expect the occupational cycle to pass rising demand amid the continued economic functional features. On the demand side, eign debt default, changes in local govern-thought to be the interesting area for invest- Meanwhile, a real estate fund based in that the tightening supply of credit and rising its peak and consolidate during the forecast growth on a long-term basis. An institutional the needs of commercial space users have ment and the growing inflationary pressure.ment over the short-term. Retail in Hong selling property Singapore with asset exposure in Singapore, cost of debt will be the key issues affecting period. An institutional investor based in investor based in Singapore said real estate changed, thus rendering older developments A property company based in SingaporeKong is highlighted as one of the favourites. Hong Kong and China expressed its desire its target markets in the next 12 months. There were a range of targets, including India said global uncertainty is going to ham- always appreciates over the long-term and functionally obsolete. mentioned that the key challenge is shorterIn the logistics sector, Sydney, Singapore to dispose of offices in the core locations of China residential, Hong Kong residential, per short-term growth of real estate. this is particularly true for Asia. but more volatile real estate cycles in Asia.and Vancouver are the popular spots. Hong Kong due to compressed yields and Meanwhile, the vast majority of respondents Singapore office and India office, which are general sentiment In general, Asian investors remain keen in limited upside for rental growth. However, it Regarding rents, the responses were rela- (77%) anticipate suburban office real estatefor long-term identified by Asian investors for disposi- finance China but policy risks and the liquidity of would not undermine their interests in qual- In terms of general market sentiment, the tively mixed, although 56% of Asian inves- will see an increase in demand in ten years’Over the long-term, investment targets tion over the next 12 months. The reasons Renminbi remain their key concerns. ity office assets in decentralised areas. Over the past six months, the majority of vast majority of respondents (73%) agree tors said rents will exceed the rate of time. This will particularly be the case whenfall in a much wider range. Residential in for disposition are a combination of over- Asian investors (69%) felt a tightening of that the pricing of commercial real estate inflation over the next three to five years. some of the older buildings situated in urban On a positive note, Asian investors believe thatDelhi is a long-term play but investors also valuation, timing of market cycles and the lenders’ credit underwriting standards. has increased too far, too quickly. In addi- An institutional investor based in Singapore downtown locations become obsolete. real estate will continue to be a good hedgefavour residential opportunities in New forthcoming expiry of holding periods. In market sentiment Meanwhile, there was an even higher per- tion, the same percentage of respondents indicated that it is going to be true for against inflation. Given the recent surge inYork, Vancouver and Los Angeles. Similarly relative terms, there is a higher portion In general, the respondents believe the current centage of respondents (77%) experiencing (73%) reckons that commercial real estate Singapore and Japan but not for China. commodity prices, price inflation of construc-in the case of offices, New York has been of respondents looking to dispose of their market outlook occupational real estate cycle in Asia is about an increase in the cost of debt during the is a more “precious” asset today versus ten tion materials such as steel and cement havehighlighted in addition to the typical invest- office assets in Hong Kong and Singapore, From an investment management point 8:15. In other words, demand is on the rise and period. In addition, 54% of the respondents years ago. Looking forward, there are a number of key actually helped push up real estate prices.ment locations in Asia – Hong Kong, of view, 65% of respondents indicate that the market is close to seeing a full upswing. indicated that the maximum loan-to-value uncertainties that will affect investors’ targetP. 14 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 15
Australia & “The majority of investors now see overseas markets as too risky at present, given economic conditions in many major markets.”New Zealand sydney strategy buying property Just over 60% of respondents indicated that they were likely to main targets expand their real estate holdings over the next six months, with just Overwhelmingly, respondents are looking to their domestic markets regional author fewer than 18% stating it was unlikely. This level is higher than last over the next 12 months. The majority of investors now see over- year, when 46% of investors were looking to expand. The main fac- seas markets as too risky at present, given economic conditions in tors preventing growth of portfolios was the ability to raise new many major markets. One investor stated “We limit our investments equity, and the supply of “for sale” property. to domestic Australian holdings, for reasons of social and political stability and the mining boom” while another investor stated that “We risk are not prepared to invest overseas as it is too uncertain.” John marasco managing director Around two thirds of respondents suggested that they were targeting Given the strong performance in office markets around Australia over Investment Services returns in the region of 5% to 15%, a relatively low target IRR com- the past 12 months, it is not surprising that the top three acquisition Australia targets were Sydney, Melbourne and Brisbane office assets. In terms pared to other regions. of geographical location, Sydney property in general was the most Correspondingly, Australia/New Zealand investors were far less risk popular target location. aggressive than other regions, with 65% outlining that they are less compelled to move out on the risk curve to achieve superior returns compared to six months’ previously.P. 16 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 17
12 12 peak peak 17.9% are somewhat On average, what stage likely On average, where do you 43.8% of the occupational cycle How likely are you to anticipate the occupational cycle are most likely downsizing downsizing upswing upswing do you believe Australia 9 3 9 14% 3 in Australia and New Zealand expand your portfolio in 17.9% and New Zealand to be are unlikely 33% will be in 12 months? 41% the next six months? in currently? 20.5% 13% 16% are possibly 31% 13% trough trough 6 6for development vacancy rates peaked more than 18 months selling property than 50% believe that the market is still in In terms of cost of debt, half believe that precious asset compared to 10 years ago. believe that demand will increase for sub- The local political landscape was also high-For development potential, office assets are ago, and rental growth has been strong the early stages of an upswing; however, a there has been no change in the cost of in the region is not a more precious asset. urban office space over the next ten years. lighted by some investors in Australia with Although office assets were seen as thealso the most frequently targeted category since that time. greater proportion take the view that rents debt over the past six months. A further This is quite a different result to most one commenting “The Australian politi- top acquisition targets, they also camewith Sydney being seen as having the most will have passed their lowest point and 30% believe that cost of debt has increased, regions around the world, with only Asian cal landscape is seriously affecting the for long-term out as being the top category for disposal. “Respondents also notedpotential, closely followed by Melbourne. begun rising. while 20% believe that it has decreased. investors expecting a similar trend. Sydney office is seen as a better long-term Melbourne office assets were slightly moreBoth these markets will have limited new Half believe that the maximum loan-to-value overwhelmingly (77%) that owning hold, which is consistent with Sydney’s likely to be listed as assets to dispose of, “When considering future demandsupply entering the market and are therefore although the difference was minimal. It is ratios have also remained unchanged over obsolete property was a greater office market location in the rental cycle. The “Although office assets were seen as outlook for suburban office space, 50% oflikely to see strong rental growth. this time period, with 30% taking the view concern than ten years previously.” vacancy rate in this market has now peaked likely that the popularity of Australian office the top acquisition targets, they also that they reduced over the period. The majority of respondents in the region respondents believe that demand will and rental growth is expected to be strong assets at present is encouraging many to see this as an ideal time to take buildings came out as being the top category (59%) believe that rental growth will exceed increase for suburban office space“For development potential, office over the next two years, with minimal new for disposal.” general sentiment Of those that saw it as being more valuable the rate of inflation over the next three to over the next ten years.” supply entering the market. to market. The third most popular category assets are also the most frequently (32% of the total), the main reasons cited five years, further showing confidence in the listed was Melbourne Industrial. In terms of pricing, a third of all Australia/ targeted category with Sydney being The US office market was a surprise entry finance was limited supply. It was seen as a secure market. Global economic health however, is New Zealand investors believe that given seen as having the most potential…” considering that Australian-based assets investment and there was high demand. seen as the main issue impacting the market economic situation. Both need to stabilize market sentiment In comparison to six months ago, around market fundamentals, pricing has advanced tend to dominate the list. It does, however, half of all respondents have taken the view (55% of all respondents). Many cite con- before further investment is considered” and too far. Whilst two-thirds believe that prices Respondents also noted overwhelmingly show the strong potential some investors Investors continue to be upbeat about the state cerns about problems in the US and Europe another saying that “lack of political cer-for short-term that conditions in the lending market have are either at the right level or have some (77%) that owning obsolete property was a see this market to have. of the market with most respondents (77%) flowing through to markets in Australia/New tainty is a problem.”In the short-term, Melbourne office was not changed. Around 30% believe that there further potential for growth. greater concern than ten years previously. still seeing the market in early upswing. has been a tightening of standards, while Zealand. Access to finance is also seen asseen as having the most solid returns, con- A notable majority of investors don’t believe When considering future demand for sub- an issue (17%).sistent with Melbourne’s office market loca- Looking forward 12 months, investors the remaining 20% believe there has been a that real estate in that region is a more urban office space, 50% of respondentstion in the rental cycle. Melbourne’s office remain optimistic about the outlook. More loosening of standards.P. 18 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 19
Canada “A shortage of properties for sale has no doubt pushed investors to move outside core Canadian cities, into more tertiary markets.” vancouver strategy Looking at target IRR, 65% of Canadian respondents stated that they were seeking returns in the region of 5% to 10%, reflecting Looking ahead to the next six months, 86% of Canadian inves- the core-to-core plus strategies that we have seen in the Canadian tors expected to expand their real estate portfolios. This figure was regional author landscape. Investors aiming for returns in the 10% to 15% range up sharply from a year ago, when 61% of respondents indicated were 25% of the Canadian sample, while investors hoping to get they would be expanding their respective portfolios. The balance of returns between 15% and 20% came in at 5%, as did those seeking Canadian investors expressed reasonable appetites to grow their returns of above 20%. real estate portfolios, answering that they were somewhat likely to expand. milton lamb risk The number one factor in determining whether investors would be senior vice president able to grow their portfolios was the supply of “for sale” property, In sharp contrast to last year, most Canadian investors appear to Investment Services with 64% listing this as their primary concern. The next two con- be willing to take on more risk. This years’ survey shows 64% of Canada cerns, held by 18% of investors, was whether they would be able to investors have moved out on the risk curve relative to six months raise new equity and economic uncertainty. No Canadian respon- ago. This is almost certainly the result of improving fundamentals dents listed access to debt. and a degree of confidence that the economy will continue to expand. A shortage of properties for sale has no doubt pushed investors to move outside core Canadian cities, into more tertiary markets.P. 20 Global Investor Sentiment Survey Colliers International Colliers International Global Investor Sentiment Survey P. 21
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