A tricky market environment has kept investors on their toes in 2022, further dampening sentiment in light of rising inflation and persistent rate hikes. In times of crisis, real assets become more attractive, and CBRE Group says that global real estate will provide an attractive hedge against inflation.
The real estate services provider and investment firm says that overall investment values are still healthy and assets with strong fundamentals and potential for rent growth will see capital inflows. CBRE in a recently published whitepaper says that global markets are seeing a higher number of sellers and buyers of different assets.
However, the investment management firm says that foreign investment in the US will be weak due to a strong US dollar and higher hedging costs. Despite a weak economic outlook for Europe, equity capital in real estate is stable, but CBRE expects the full year 2022 investment volume to decline 10% over last year.
CBRE says Asia-Pacific investment volumes will remain relatively healthy, with Japan seeing a high level of investment, Vietnam seeing increased demand for industrial assets, and India experiencing record growth.
Additionally, investors are now more inclined towards ESG ratings for making investment decisions. CBRE believes that the ESG trend will ‘eventually see assets with the top certifications and performance achieve a premium in terms of pricing.’
The whitepaper goes on to talk about industrial assets, the likelihood of a recession and its impact on global real estate, debt investments and the behaviour of public markets.
Download the full whitepaper here.
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