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Laxman Pai, Opalesque Asia: Institutional investors have signaled a greater appetite for risk in the year ahead, according to the global Investment Intentions Survey 2020.
The survey by Inrev, Anrev and Prea indicates that a minimum of €98.1 billion of new capital is expected to be invested in real estate globally in 2020.
The lion's share (61%) will come from investors in Europe, with just under 20% each from investors in North America and the Asia Pacific.
The contribution from European investors is expected to rise from €32.5 billion in 2019 to an estimated €54.1 billion over the next two years.
During this period, Europe is expected to attract significant volumes of capital amounting to €39.8 billion compared with €28.3 billion destined for the Asia Pacific and €19.4 billion targeted at North America.
Twenty percent of global investors investing in Europe - including a majority of those domiciled in the region - cited 'opportunity' as their preferred investment style. This is up from 9.8% last year and marks the highest percentage since 2009.
These results reflect investors' ongoing search for alternative ways to deploy capital and drive returns, in the face of continued low-interest rates and low yields. They also build on a continuing trend, with investors having on average allocated more than 12% of their total real estate AUM to opportunity strategies in 2019 - an increase of almost 50% compared with the previous year.
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