China has endured the pandemic the longest, and experienced an early economic rebound as a result of its containment efforts, all while other world economies continue to struggle under the weight of new cases and slow vaccine roll-outs. A year on, what can investors learn from China’s economy and real estate markets as they continue to recover?
Looking at China’s residential markets through the lens of a multiplayer game among the central government, local governments, developers, lenders and homebuyers can yield a better perspective than any market demand/supply models.
Amid the COVID-19 pandemic, the institutional real estate community has taken steps to adapt, which can be seen in the responses to our annual investor survey. They revealed an impact on real estate investment activity in 2020, though lesser than occurred during the global financial crisis, according to 2021 Institutional Investors Real Estate Trends, the 25th annual investor survey jointly conducted by Institutional Real Estate, Inc and Kingsley, a Grace Hill Co.
The importance of integrating real estate with technology has never been more apparent than during the COVID-19 pandemic. Almost overnight, businesses had to adapt to a new reality, and technology allowed some companies to continue their operations even at the height of lockdowns.
Requiring an investment manager to have skin in the game — when the investment manager is taxable and the capital provider is tax-exempt — actually amplifies, rather than reduces, the inherent conflict of interest resulting from the agency problem.
A new survey of many of the world’s leading real estate investors finds 92 percent of respondents expect demand for “healthy buildings” to grow in the next three years, a compelling signal of the direction the real estate sector is heading.
While most cap rates remain unchanged, cap rates for logistics assets are still compressing, notes CBRE’s Asia Pacific Cap Rate Survey March 2021, which was conducted between 1 March and 12 March.