Sydney ranks fourth for global investment

Sydney ranks fourth for global investmentGlobal real estate investors look to Sydney, according to CBRE’s Global Investor Intentions Survey 2015.CBRE’s latest report finds that 53 per cent of global real estate investors plan to increase their acquisitions in 2015.Investor appetite for cross-regional acquisitions has also increased, with 38 per cent of respondents intending to invest outside their own region – up from 28 per cent in 2014. Thirty-one per cent identified Western Europe as the top destination, with 27 per cent of investors regarding Asia as their preferred investment destination. While London retained its position as the top city for investment, Sydney ranked fourth, ahead of New York.CBRE national director Josh Cullen says that Sydney’s high ranking is “no surprise”, with Australia “offering some of the highest returns on a global basis across all our core sectors, with returns on secondary assets being even more attractive.”Globally, office and industrial remain the preferred asset classes, selected by 33 per cent and 29 per cent of investors respectively. Half of respondents identified asset pricing as the top acquisition obstacle, with the tight availability of assets (21 per cent) and competition from other investors (19 per cent) also barriers in all regions.The survey of more than 700 real estate investors was conducted in January 2015. Respondents included 317 from the Asia Pacific region, 290 from Europe, Asia and the Middle East, and 85 in the Americas. CBRE’s global chief economist, Richard Barkham says that the “new normal” economic environment of moderate growth, low interest rates and compressing bond yields continues to drive investment in commercial real estate. “The survey findings strengthen our view that overall volumes and cross-regional investment will increase in 2015,” Barkham concludes.To read the report click here.