$1 trillion to enter global real estate markets in 2016
Speculation is that global real estate investors will remain active in 2016 too. According to the CBRE Global Investor Intentions Survey 2016, real estate markets around the world are expecting injection of over US$1 trillion.
“Worldwide land speculators remain unequivocally expansionary in 2016, with more than USD 1 trillion of arranged uses expected to enter worldwide land markets 6 percent higher than in 2015,” CBRE said in an announcement.
Indian real estate market is also expecting rise expenditures and investments. However, according to experts, India’s share will be significantly smaller than the overseas markets. “Real estate remains an important asset class for domestic and overseas investors. The year 2016 promises to be a good one for the industry and it is expected that India’s real estate sector will get some benefit, albeit a small share, of the global real estate investment funds” says Anshuman Magazine, Chairman & MD, CBRE South Asia Pvt. Ltd.
With an expected share of 48%, North America (mainly USA and Canada) is the most preferred destination for speculation. Western Europe follows with expected share of around 26%. Sydney, London, Los Angeles will be the top provincial focuses of financial specialists.
Investors continue to see real estate attractive, mainly due to comparatively higher returns and stability. Survey reveals that investors are looking forward to make purchases outside their home region. It’s safe to say that people’s interest in cross-border investment remains high.
Even though world economy is still reeling under the global slowdown, a sign like surge in real estate investment shows global economy is on the right track.