Colliers International conducted a survey Global Investor Sentiment Survey among those involved in the property industry - private and institutional investors from around the world. Questions were related to plans and expectations for the real estate market within the next 12 months and more. 2013 will be characterized by the expansion and development of foreign investment. The biggest obstacle is the lack of high-quality properties in good locations, and poor access to finance.
Tony Horrell, CEO of Colliers International in the UK and Ireland, says: Key investors have become more selective when it comes to the location of new investments. First they focus on the study of the local market and while planning investment in other countries, they try to target a specific sector. The survey also showed that the availability of debt financing will continue to be problematic, especially in the EMEA region, due to the strict conditions imposed by the banks and financial institutions and a low LTV ratio. There is therefore room for new financing providers, such as insurance companies. We anticipate a return to mezzanine financing. As a result, we expect greater activity on the part of specialized debt funds, expecting higher returns on investment than those achievable in the real estate sector.
According to the survey, in 2013 there will be a slow but steady increase in the volume of foreign investment. Investors from Asia, Latin America and the EMEA region had the greatest access to capital from outside their regions. The most attractive investment market on a global scale is the United States, followed by Asia and Western Europe, especially London, Paris and the leading German cities.
Real estate investors primarily choose the "safe" markets such as London, Paris, Frankfurt, Hamburg, Munich and New York. In global terms, investors are most interested in the office space market. In the United States and Latin America they focus on the logistics sector, while in Australia, Canada and New Zealand the focus is on shopping centers.
In the EMEA region, most investors believe that the current period is a good moment for investments. International actors prefer to invest in London. In Poland, the volume of transactions by the end of 2012 could reach 2.5 billion Euros, which is the same as last year. It is not the value that puts our country in the forefront of other markets of the EMEA, but it should be noted that the Polish market has potential. Interest in Poland is shown particularly by investors from the United States, the Middle East, Asia and Europe.
Commenting on the future, Tony Horrell says: In the next year we will see an increase in the number of institutions offering finance investments and mezzanine funds, partially filling the gap left by retreating from certain projects by commercial banks.2013 will be a time of rebuilding, with a moderate increase, of the number of investments and improved sentiment among investors.
The full version of the report in PDF format below.Download PDF