11
This year’s survey suggests that debt is firmly back in the frame and is consistent with increased expectations of enhanced performance from more highly leveraged IRRs.
Of the global investor sample, 78% said they were likely to use debt in future investments, up from 70% last year. Of this 78%, roughly half (49%) said they were ‘highly likely’ to use debt, up from 30% last year. Part of this increase is driven by the perception that credit standards have eased. The percentage of respondents who reported an easing of credit underwriting standards in the last six months increased to 39% this year compared with 31% last year. The percentage of investors which saw debt costs falling over the same period are identical (31% and 39% respectively).
Of the developed markets, US investors are showing the greatest debt appetite with 87% looking to use debt, followed by Pacific investors at 81%. Western European (
ex.UK) showed the least appetite with 59% intending to use debt, despite having the highest expectations (49%) that credit underwriting standards will ease over the next 12 months. OUTLOOK 2015
International property investors anticipate an increase in investment volumes across markets over the next 12 months, despite a mixed-bag of economic performance worldwide, with North America and the UK being strong, deflation worries in the Eurozone and a deliberate slowing in the growth rate of the Chinese economy and fallout for emerging markets from tightening US monetary policy.
The Asian and Pacific regions stood out, with 73% of the sample expecting to see increases in investment in 2015, with 17% and 13% respectively anticipating these increases to be over 10%.
The US and UK were also expected to benefit from that increased investment. In contrast, 41% of global investors expect to see a contraction in investment in Central and Eastern Europe (CEE), no doubt in response to geopolitical risk, although data shows that the impact has been so far confined to Russia and Ukraine. However, Poland and the Czech Republic continue to report strong activity levels. For MENA, it was a mixed picture with 34% expecting a decrease in investment and 36% anticipating an increase.
In general, the results suggest that a significant proportion of investors expect higher risk markets to maintain existing levels of investment, rather than to experience further significant inflows or outflows.
2015 GLOBAL INVESTMENT SENTIMENT REPORT
COLLIERS INTERNATIONAL
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56