Latest insights for this year have revealed that more than half of the biggest investors of the worldwide financial market tend to spend their money mainly in the real estate sector. The Spectrem Group, in its recent study, concluded that about 54% of investors plan to put their money (up to $5 million available capital to be invested) in savings or fixed-income investments.
The other half will invest in mutual funds and stock markets. 52% of the world biggest investors plan to increase their investments in real estate assets. Their targets are London, New York, Paris, Tokyo, Sidney, and San Francisco.
The Colliers Survey provideS 6 reasons why multi-asset portfolios have visionary plans towards real estate in these cities.
1. Such an allocation equity continues being the first preference for the 12 coming months.
2. Is the liquid market with highest priority investment of global investors.
3. Is a long-term income-investment.
4. Is a target that keep raising its rate evaluation.
5. Global investors feel confident in their partnership with local partners.
6. Is a form of debt return.
According to Colliers’ prediction for 2016 the real estate investments in Europe will cover about 63% of the investments only in the UK property market. London will increase investments by 43% in office space and residential properties. Than comes Paris with 19% and Frankfurt 14%, investing in offices, shopping centres and luxury retail.
In US only 6% of investors don’t show any interest in the property assets, whereas the rest of them declared that they will increase their investments within this year. Around 72% of US properties investments will be invested in San Francisco by 27%, New York by 24% and Los Angeles by 22%.
Their target focuses on offices, shopping malls and warehouses investments. Compared with the overall Americans investment only 5% of Mexican businesses are interested in spending money in real estates and fewer investments will take place in Brazilian properties.
The rest of the world is leaded by Japan and Australia followed immediately by Hong Kong, China and Singapore investments. With targets such as offices, residential and logistics spaces, the Colliers report ranks the Asian cities market with Tokyo and Sydney on top of the list followed by Melbourne, Beijing and Shanghai.
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