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Investors Plan to Invest More in Real Estate over the Next Two Years – Barclay Survey
OK, so here are some good news in terms of the desired movement in the commercial real estate sector. Thirty five (35) percent of global investors plan to increase their property allocation in their portfolios over the next two years. This is double the seventeen (17) percent who plan to reduce it over the same period according to the Barclays Wealth and Economist Intelligence Unit (BARC.L) survey. This is because they foresee better long-term returns in real estate than from stocks and bonds.
The U.S. was rated at the top as the most popular nation for investment, with 16 percent of the global investors saying they are expecting to see the best returns here. Sixty eight (68) percent of these investors said that the opportunities are in the commercial properties. Belief that properties are now undervalued was the second most common reason cited for increasing investment.
Barclay’s survey has 2,000 respondents. Forty percent were worth 500,000 pounds to 1 million pounds. An additional 40 percent were worth between 1 million pounds and 10 million pounds. Ten percent had assets of as much as 30 million pounds and the rest were wealthier.
Commercial Real Estate Investments Outlook, Current State of Commercial Real Estate Market, Foreign Investors, Survey, U.S. Economy
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I think this is all based on the fact that properties right now are undervalued. Whether values will rise will all depend on how the economy will perform in the next 2 years.
76% of respondents believed there were good investment opportunities in residential property, while 68% go to commercial property. quite close.
In the survey, almost 30 percent of British and Indian investors have more than half their wealth tied up in real estate. About 40 percent of the total respondents worth more than 30 million pounds ($49 million) have a similar allocation.
I should say that this downturn is a preclude to a coming boom.