Colliers predicts 50% surge in global property investment

“Based on our global analysis, which gives us a bird’s-eye view of investors’ interests and expected appetite, longer-term tailwinds in the property sector remain intact. With a massive volume of equity raised globally and the need for real assets, investors are eager to deploy pent-up capital and pursue opportunities during the year,” said Tony Horrell, Head of Capital Markets | Global at Colliers International. “We expect to see movement up the risk curve this year, with investors exploring all types of assets from senior care homes to public infrastructure projects.”

The increased confidence in the global property market will come from the recent vaccine developments, geo-political stability and continued government stimulus. The report combines analysis and views from nearly 300 respondents including major institutional investors, listed property companies, sovereign wealth funds, private equity funds, family offices and third-party money managers.

The report indicates that 98 per cent of investors across all regions aim to expand their portfolios, with approximately 60 per cent looking to expand by more than 10 per cent. Furthermore, 67 per cent of survey respondents in EMEA are planning their next investment in the first quarter of 2021.

Kevin Turpin, Regional Director of Research, CEE  adds: “It is interesting to note that despite the challenges faced by many investors in getting to physically see or inspect assets, and deploy capital in 2020, the CEE region closed out the year with a remarkable volume of above €10 billion. Although this represents a YoY decrease in volumes by ca. 26% (EMEA volumes -30%, preliminary), it only confirms our view that capital will return in force as soon as the vaccines and markets settle during 2021”.

Kevin Turpin

Regional Director of Research | CEE
Colliers International

Kevin joined Colliers in October 2019 as the Regional Director for Research in CEE and has been working in the commercial real estate industry in the field of property market research and consultancy for over 14 years. The research and consultancy team consists of 18 research analysts, covering numerous markets across the CEE region. Kevin’s role is responsible for the delivery of market research and insights to both Colliers clients and its business lines. Kevin and team research and advise on all market sectors with a key focus on offices, retail, industrial & logistics and investment. Kevin's previous roles have been in the HR consultancy, information technology and public sectors, where he has gained valuable international experience working with people, technology, business and finance. More »

The CEE region and individual country markets cater for a wide range of investment strategies, with opportunities on offer from single assets and portfolios, to platforms and joint ventures. 

Across EMEA, offices remain the most sought-after asset class with respondents citing office properties in major cities such as London as Munich the most attractive prospect. This was particularly evident with overseas capital, with the highest number of overseas investors planning to invest in London and Frankfurt offices.

Luke Dawson, Managing Director and Head of Capital Markets, CEE adds: “When it comes to the CEE capital cities Warsaw continues to keep its leading position with the office market having recorded almost €1.3 billion in transactions throughout 2020.  In 2021, we expect to see some spectacular transactions as a number of opportunities close or commence marketing”.

Luke Dawson

Managing Director & Head of Capital Markets CEE
Colliers International

Luke oversees Colliers International's businesses and Capital Markets teams across Central Europe. He has been with Colliers for over 10 years and 15 years in the industry, having worked in North America, Europe and the Middle East. He has extensive expensive in both real estate and corporate acquisitions and dispositions. In addition to his experience within Colliers, Luke has overseen the asset management and acquisitions/dispositions for one the largest private family offices in the Middle East. More »

“We have been saying that real estate investment is a very attractive asset class for a while. This report is a great confirmation that almost all investors expect to increase the size of their portfolios. This also reflects the situation in our local market. Moreover, supply is so limited here (in all sectors and sub-sectors) and demand is so strong that we see continued pressure on pricing for most assets. We still expect that an investment bought at today’s asking prices will look like an excellent buy in the relatively short-term – in the next one or two years – just as has happened in the last few years. Offices (as also confirmed by the very recent purchase of Parkview by DEKA), residential and logistics are the most attractive sectors here too, but we are also registering interest for manufacturing, retail, hotels and other sectors,“ said Andy Thompson, Head of Investment, Colliers International Czech Republic.

Andy Thompson

Head of Investment Czech Republic & Slovakia
Colliers International

Andy joined Colliers International in 2015 as Director and Head of Investment Services and has been the firm to establish itself as the leading investment consultancy business in the Czech & Slovak Republics. Andy graduated from the University of Aberdeen with a Masters Degree in Land Economy and is a member of RICS. Andy's scope of responsibilities includes the structuring and execution of property asset sales and acquisitions, both buy & sell-side commercial due diligence and advisory, commercial negotiations of sales and purchase contracts and supplementary transactional documentation as well as transaction co-ordination. Andy differentiates his services through exceptional client care and attention to detail ensuring the best terms for his clients. More »

“As evidenced in the better half of 2020, investors are putting more focus on sustainability and efficiency issues when it comes to underwriting deals. Some part of the older and ineffective office stock, combined with slower leasing of the new pipeline estimated at 160 000 sq m will push the vacancy level considerably above the double-digit mark. The importance of key locations and stability of underlying cash flow is ever-increasing. The true winner of the pandemic is the warehousing and logistics sector in large with strong growth in values on the back of excess demand. The retail sector’s performance is rather divided and unbalanced. Whilst the typical shopping centres and high street retail have been struggling; supermarkets, strip malls and other specialised stores are delivering solid results, hence commanding strong liquidity," added Bence Vécsey, Director, Head of Capital Markets at Colliers International Hungary.

Bence Vécsey

Director, Head of Capital Markets
Colliers International Hungary

Bence Vécsey started his professional career as a Senior Investment Adviser at DTZ’s CEE Regional Investment team representing major institutional clients on domestic and regional transactions. Bence relocated to Warsaw in 2010 strengthening the Polish investment team of DTZ. Upon his return to Budapest in January 2013 he has been in charge of the Investment Advisory business of Colliers in Hungary. Bence’s most recent deals include Arena Plaza, Green House, Infopark E, Tesco Óbuda, Auchan Distribution Center, inNove Business Park, M1 Business Park and Park Atrium, among others.  More »

Additional key takeaways from the Colliers Global Capital Markets 2021 Investor Outlook report include:

• Logistics and living sectors are thriving. Both sectors were among investors’ top three choices across all regions. Intense demand for these assets will require investors to broaden their geographic focus and build portfolios through joint venture platforms and local partnerships. In EMEA, the survey showed over a third of investors expect value-add industrial and logistics assets to appreciate 10% or more in 2021. “Also, the CEE region has always been among the first destinations in the minds of foreign investors, from the production and logistics sectors, when looking for savings on personnel costs and availability of a skilled workforce” adds Kevin Turpin.
• Alternatives, platforms and partnerships are playing a bigger part. Rising demand for alternative assets such as data centres, senior living and life science assets reflects broader structural shifts amplified by the pandemic.