Global investors will remain bullish this year about buying properties and enthusiastic about Paris real estate investments.
“Real estate continues to shine,” concludes the 2016 Global Investment Outlook by Colliers International.
It states that the most liquid markets will have most appeal for cross-border investors. These are found in gateway cities: namely those of London, Paris, New York, San Francisco, Tokyo and Sydney.
Paris Real Estate Investments
Offices, shopping centers and luxury retail are among the top three investments in continental Europe. Paris will attract 19% of global real estate investment in Europe, after London (43%) and before Frankfurt (14%).
These markets have the advantage of offering large lot sizes and a volume of stock that appeals to global mandates.
Colliers International carried out in-depth research of 650 investors across the risk spectrum from the Americas, EMEA and Asia-Pacific regions. They represented real estate holdings with total assets under management of around $1.5 trillion.
More than half (52%) of the investors with multi-asset real estate portfolios said they planned to increase allocations towards real estate this year.
Global Real Estate Transactions Growing
Global real estate transactions are predicted to exceed 2014 levels. They will come close to pre-financial crisis levels in 2016, according to Colliers.
Its conclusions are based on factors such as the current poor performance of global equities markets and macroeconomic and political threats. These include further interest rate hikes in the US and Chinese economic uncertainty.
It says: “More investment decisions will be made on a long-term basis. Hence prices for matching assets will rise further, especially in safe haven markets.”
Forbes Weighs In
Colliers’ opinion is echoed by American business magazine Forbes. It has published an article called Why The Best Investment In 2016 Might Be Global Real Estate. It states: “Real estate buyers are taking on increased debt to fund purchases. It’s a “when all else fails” approach that keeps real estate hot in most world-class cities.”
Colliers’ findings underline the long-term investment value of real estate in the world’s most well-established ‘gateway cities,’ among which Paris ranks prominently.