Asian investors to increase global real estate investment
Limited stock of investable property within Asia could push Asian investors to seek more than US$150 billion in direct and indirect global property investment during the next five years, primarily in gateway cities such as London, New York City and Sydney, according to the latest research from CBRE. Additionally, a low interest rate environment and weak stock market performance make low-risk alternative assets such as real estate more appealing to Asian investors in their search for adequate returns on their investments. These Asian investors are expected to increase their portfolio allocations to property by at least another 2.5 percent to 3.5 percent within the next five years, up from a target allocation of approximately 1.7 percent currently.
“The next few years will see a number of new entrants to leading global real estate markets such as London and New York,” noted Chris Ludeman, president