More than half of global real estate investors will increase their acquisitions this year, according to CBRE.
The company’s Global Investor Intentions Survey found that 53% of investors plan to increase their purchases this year.
Investor appetite for cross-regional acquisitions has increased significantly, with 38% of respondents intending to invest outside their own region this year.
The figure is a 28% improvement on the same point last year.
Chris Ludeman, global president at CBRE Capital Markets, said: “The appetite for global real estate investment is increasing as more investors intend to deploy capital outside of their own region this year.
“Competition for assets is intensifying, and many investors plan to move out the risk curve in search of higher yields – a trend that will result in a stronger focus on value-add and opportunistic investments.”
CBRE said 31% of new investors had identified Western Europe as the top destination.
Despite a slowdown in China, 27% of investors regard Asia as their preferred investment destination, with economic growth there still outpacing other regions and continuing to offer significant long-term growth potential.
London retained its position as the top city for investment, while other gateway cities such as Tokyo, Sydney, New York and Paris remained in the Top 10.
Second-tier cities saw an increase in investor interest in 2015, with Madrid, Dallas and Seattle all making the Top 10.
CBRE said investors were seeking more attractive yields, as well as greater knowledge and comfort in a larger number of global cities.
There is also a marked increase in appetite among investors from Europe, the Middle East and Africa (EMEA) and North America for value-add and opportunistic investments.
In contrast, Asia Pacific saw a significant jump in investors preferring prime core assets at 43% in 2015, compared with 29% last year.
Office and industrial remain the preferred asset classes, selected by 33% and 29% of investors, respectively.
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