Investors remain sold on real estate, at least according to the 2016 Global Investor Outlook by Colliers International.
Investors continue to sink their dollars in real estate across the United States, mostly because they consider it a stable investment. This is especially true for international investors who are wary of investing in the sometimes shaky economies of their own contries.
According to Colliers, transactional activity in the first nine months of 2015 confirmed investors’ appetite for real estate. The company reported $625 billion of direct property investment worldwide during this period. That is up 11 percent from the same period of 2014.
Don’t expect this trend to slow soon. More than half of respondents with multi-asset portfolios told Colliers that they would increase their real estate allocations in the next 12 months. Only 11 percent of these investors told Colliers that they planed to decrease the amount of money they plan to invest in real estate.
Colliers reported that the global investment community is bullish on real estate, especially in the United States.
“Our report suggests that the days of ‘pass the parcel’ are over, and long-term, secure investment in core markets will be the norm,” said John Friedrichsen, chief financial officer of Colliers International. “At the other end of the risk spectrum, large volumes of capital already raised will increasingly seek out opportunities in tier-two cities and recovering markets.”