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Investors have identified key areas to invest

 Investors have identified key areas to invest in real estate in 2022

Investors expect a gradual recovery of all major global real estate markets, including those hardest hit by the pandemic, and an increase in investment in 2022 by 15-20%

Investors have identified key areas to invest

By the end of 2021, the global real estate investment market may grow by 15-20%. At the same time, the requirements for things have changed relative to the pre-pandemic level, as follows from the 2022 survey of global investor intentions presented by RBC-Nedvizhimost, prepared by CBRE.

Investors are anticipating a gradual recovery in all major global real estate markets, including those hardest hit by the pandemic. Shopping centers will gain popularity again in Europe. An additional encouraging factor in recent months has been the increased willingness of some banks to provide financing for retail properties,” the study notes.

The hospitality sector is recovering most actively in Europe, the Middle East and Africa, as well as in the Asia Pacific (APR) region. The study indicates that the main demand is in the markets where assets are sold at a significant discount. Demand in the Asia Pacific region is supported by expectations of significant pent-up demand for tourist travel.

Investors surveyed assess the outlook for the office sector more modestly. About half of the respondents believe that it will not grow over the next three years. The exception would be high-end assets in central business districts that provide long-term revenue streams. Interest in properties with shorter cash flows that require extensive management will continue to decline. 

Among the regions, Asia Pacific investors are the most optimistic about the outlook for the office sector - 14% of them anticipate growth in 2021-2022 due to the growth of the service industry and employer prohibitions on working remotely.American investors are the most important: most view remote work as a long-term trend.

 Investment activity in the office real estate market is constrained by the factor of maintaining the coordination of remote work, while we see that investor interest in this sector has already returned. We are also seeing renewed interest in asset trading by investors with experience in the sector.”

In Western markets, particularly in North and South America, CBRE sees opportunities to invest in alternative real estate sectors: student housing and self-storage warehouses. Such assets as condominium are also required.

European investors are interested in data centers and medical institutions. "Demand for data centers is expected to continue to grow throughout 2021, with the clear winners being centers in major cities across the EMEA region," the study said.

“"Investment activity in these real estate industries is at a low level due to limited availability, notwithstanding the strengthening of the worldwide trend of investment in alternative real estate sectors, and often a lack of high-quality product,” notes Vladimir Penev. "This is the main brake to the development of the alternative real estate sector."