Investors keen about global real estate; Tokyo top destination in 2015 - survey
Investors intend to increase the weightings of real estate in their portfolios, with the average allocation expected to rise to 11.3 per cent from 10.8 per cent
Investors are going to pour an estimated US$58.5 billion into global real estate this year because property is more attractive as an asset class given the low interest rate environment, weak bond yields and rising volatility in world stock markets, according to an investment intentions survey jointly published today by industry associations.
The annual survey is in its eight year and was published by 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 Pension Real Estate Association (PREA).
“2015 looks to be an active year for Asia-based investors in global real estate investment allocation which is positive for the industry overall in this region and for cross-border flows,” said Alan Dalgleish, Chief Executive of ANREV.
Investors intend to increase the weightings of real estate in their portfolios, with the average allocation expected to rise to 11.3 per cent from 10.8 per cent, the survey showed.
The survey attracted a record 337 participants comprised of investors, fund managers and fund of funds managers. Out of the total, 82 were from the Asia Pacific region.
The current environment of low interest rates and low bond yields has highlighted the attraction of real estate as an asset class, especially for those seeking relative value when comparing real estate with low fixed income and volatile stock markets, the survey said.
