Outlook good for real estate investment after a record 2017

In its annual Global Investment Atlas 2018, leading property agent Cushman & Wakefield noted that a strong global economy across all markets will encourage investors to release more funds into real estate in 2018 compared to 2017’s record $1600bn.

Major commercial real estate services and investment firm CBRE said 33% of investors intend to invest more capital in 2018 than last year, based on its annual EMEA Investor Intentions Survey, released during the MIPIM annual real estate event. CBRE added that 70% of investors are actively pursuing ‘alternative’ assets, such as student housing and retirement living.

Greenfield FDI into real estate witnessed the highest number of investment projects in 2017 since 2008, totalling 630, according to fDi Markets, a greenfield investment monitor from the Financial Times. This trend was driven by increased FDI into Europe’s real estate sector, which saw 320 projects in 2017 – almost half the global total –a significant increase on 203 projects in 2016, and 176 in 2015.

CBRE also confirmed that 2017 was a record year for real estate investment in Europe, with volumes totalling €291bn. Cushman & Wakefield reported that Asian investors were particularly active, augmenting their investment in Europe by 96% year-on-year. Investment from Asia-Pacific to Europe hit $39.5bn in 2017 compared to $20.9bn heading towards the Americas.

Consequently, the mood at this year’s MIPIM in Cannes was highly optimistic. This was reflected in the record number of attendees: 26,000 real estate, city and political leaders, including 5400 investors, from more than 100 countries.