High Global Investor Confidence Forecasted for 2014
More than 70 percent of global investors plan to expand their portfolio within the first six months of 2014, with investor confidence forecasted to reach high marks, according to a new report from Colliers International.
The 522 global investors surveyed for Colliers' 2014 Global Investor Sentiment Survey demonstrated increased confidence in global markets for 2014, with investor focus expected to shift.
There will be an "increased [investment] volume across all property types as equity investment continues to spread to secondary markets in search of yield and loan capital continues to become more available," Richard Putnam, managing director, Western Region, Colliers International Capital Markets Group, told WPC News
The U.S. is the top investment destination among global investors, even as the country's economy recovers from the recent government shutdown, Colliers reports.
Investors are also expected to target Western Europe, Brazil and gateway Asian cities, Mr. Putnam said. Investors in mature markets like the U.S., Europe and Canada tend to seek returns between five and 10 percent, but in Asia, investors are looking for returns of 20 percent or higher.
Investors will target industrial and multi-family property for higher returns, as well as office products considered urban, creative, unique, necessity-based or high street retail, Mr. Putnam told WPC News
The capital source for investors consists of institutional co-mingled funds, private high-net worth family equity searching for longterm income and foreign sovereign funds.
While investors are expected to up their investments in 2014, they also forecast obstacles. Almost half of the investors surveyed expect the cost of debt to increase next year.
The recovery of various countries, including Spain, is also creating caution among investors, analysts say.
"Social changes created by austerity imply risks," Mr. Putnam said.