A flood of fresh capital is waiting to be deployed into real estate this year, leaving savvy investors wondering as to where it will go?
A new 2017 Global Investor Intentions Survey and report from the World Property Journal reveals ‘the 3 Cs’ of real estate this year as Confidence, Capital, and Commercial property. International investors are now seeing strong economic activity and thus have become comfortable with the uncertainty that remains, as they are flushed with cash and credit to deploy.
Survey results show that investors have at least $1.7T to invest in property this year and North America continues to be the preferred region to deploy that capital. Nearly 84% of the survey respondents said that they planned to spend the same or more on real estate investments in 2017, when compared to last year.
How this capital is deployed may vary slightly depending on the region and the various opportunities that become available on to the market. Investors are reportedly once again expanding from core investments to core-plus and opportunistic opportunities, as well.
Intelligent investors and those that will come out ahead are those which are keeping a close eye on emerging trends and not just what worked in the last phase of the cycle. Technology, employment trends, venture capital flows, and industrial trends are all currently reshaping markets. While affordability and interest rates are also among the main factors which could impact real estate markets over the next 12 to 24 months.
These trends could especially make opportunistic and value add opportunities in the retail sector in Canada attractive this year. Between commercial real estate, new technology, enhanced retail performance, and the revival of the Keystone XL pipeline project, Western Canadian markets such as Calgary and Vancouver could bring exciting real estate investment opportunities in the months ahead.
It looks like 2017 is set to be another major year for global real estate. Billions are already being funded and invested, with North America likely to be the recipient of much of the international property investment capital available. Although competition for deals may continue to be heavy in some areas, growing fundamentals in expanding metro areas may help provide some additional insights into which types of properties will perform well in this next phase of the market.