Real investors: Institutional investors want returns — and clarity — in Asian property markets
For institutional real estate investors and money managers, the second half of the decade promises to be busy — and probably more lucrative — as additional trillions of dollars are channelled into investment-worthy property. By 2020, the global pool of investable assets will soar to more than US$100 trillion, up from about US$64 trillion in 2014, according to a recent report from PwC, the global accounting and business services giant. With yields depressed in the bond market — and some say low interest rates are the “new norm” — there have been predictions of a “wall of capital” to enter institutional real estate to finish out the decade.
Fast-growing and developing Asia, as opposed to the more-developed and slower-growing West, will be the target of much of the expanding flood of money — although of late Japan has been a favourite for real estate capital. But whether in Japan or on the continent proper, the amount of money that institutional investors will