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Colliers has just released its global investment vision report 2022, after a large-scale survey with the participation of more than 300 investors worldwide, personally conducted by the regional directors of the company. Colliers conducted through in-depth interviews.

Colliers said that office real estate in big cities such as London, New York, Tokyo or Sydney continues to attract the attention of investors and the demand will increase significantly next year.

Offices in central areas will be a priority for international investors, with about 60% of them clearly stating their investment preference with this type of property. Meanwhile, industrial and logistics real estate will be the most “desired” category.

 

According to Colliers, the attractiveness of the office segment comes not only from the fact that investors realize that the demand is still very high, especially in cities with developed infrastructure.

 

The increase in construction costs, with more than 80% of investors admitting that this is a “headache”, will limit new construction, renovation and maintenance, and this situation will cause demand on increased office real estate.

 

Colliers believes that 2022 will be a promising year for real estate investment in Asia – Pacific as increased international investment along with a return of optimism will boost investment real estate activity in the area.

 

Across Asia, investors have been preparing to realize many of their ambitious plans that have been put on hold by the COVID-19 pandemic. International investment is likely to return as tourism and other economic activities gradually recover.

 

“Optimism across Asia is growing and investors are eager to diversify their portfolios,” said Terence Tang, Colliers Asia Capital Markets and Investment Services Director. The number of transactions is slowly returning to pre-COVID-19 levels.

 

Meanwhile, industrial and logistics real estate in Asia will be the most sought after when more than 20% of investors are forecasted to be able to earn 10-20% of profits in 2022 due to their confidence in the real estate market. It has the dramatic transformation on a large scale of the regional economy.

 

Built-to-rent (BTR) ships will also be more sought after by investors, including completed projects or projects that need further development. In Japan, this is a segment that has “clearly” shaped the market and attracted a lot of investment capital, while in Australia, this is a segment with strong growth with many opportunities for profit.

 

“BTR is essentially a segment that grows to take advantage of newly built infrastructure, and this is a strategy we encourage with other segments as well.

You need to know what projects are about to start, where they are going to start, with relevant information about real estate, and put money into properties that can be used for many investment purposes,” said John Marasco, Colliers’ director of Investments and Capital Markets in Australia and New Zealand.

 

The Colliers report also shows that many investors believe in the versatility and ability of retail real estate to appreciate over time. About a third of investors who want to put money into retail are aiming for long-term profits.

 

In addition, the hotel segment is also a long-term investment target of many people and about 38% of investors are looking for opportunities in this segment. Overall, both the retail and hospitality segments present opportunities in cities with good domestic consumption, such as in some Japanese, Australian or Korean cities.

 

It is likely that real estate in the data centre, life sciences and health segments will also receive major investments next year, while the student rental segment may also receive significant investment. It shows the recovery as Australia – an important market for this segment – reopens to foreigners.

 

“The trend towards more alternative asset classes will continue in most Asian markets as investors look to find other growth channels amid dramatic changes in financial markets, technology and health needs,” said Colliers Asia Capital Markets and Investment Services Director.

This report of Colliers also shows that issues belonging to ESG (environment, society and governance) will continue to receive more attention when three-quarters of the surveyed investors said that the integration environmental goals in their development strategy. This is a move to show that their properties are geared towards sustainable development and also a response to calls to respond to climate change.

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