Cross-border real estate investment set to grow
London is seen as the property hotspot in 2006.
A survey of the top 120 global investors in real estate shows that foreign investment in the asset class is set to grow. Fifty eight percent of respondents to DTZ’s fifth annual global investment intentions survey invest in foreign real estate. Of the 42% that do not, more than half said they intended to. Almost a quarter of those not investing in foreign real estate, are planning to do so this year.
The top five markets that investors say they are looking at are the UK, Germany, the US, Singapore and Malaysia.
The report says that the driver of a global real estate strategy by investors is the growing recognition of the role of foreign real estate in portfolio diversification, and the need to search for higher yields and value farther afield.
Both European and US investors named UK capital city offices among their top priorities for the near future. However, both sets of investors said their regional markets were the highest priorities. The UK and Germany filled the top 10 rankings for European investors in the commercial property sector. For US investors, Canada and the US were given as the major regions of investment opportunity, also in commercial property.