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Emerging markets, including India, China, Qatar and Chile, lead the pack of countries poised for real estate investment in the next 12 months, with Canada following closely in fifth spot, according to a new reading of global industry confidence.
“Confidence is returning to the sector as credit availability and strong industry fundamentals create a more stable foundation for deal-making,” says Krista Blaikie, EY’s National Real Estate leader. “Companies that were focused on maintaining stability and operational efficiency are now shifting gears and looking ahead at new investment opportunities.”
Overall, respondents’ optimism is up considerably from 53% one year ago.
“Investors are looking beyond the developed world — with the exception of Canada — and focusing their investment strategies in emerging markets with immense growth potential,” says Blaikie. “Canada, on the other hand, continues to attract the attention of investors searching for a stable political and economic environment not found in the Eurozone.”
Those ready to transact in the year ahead are focused on smaller deals, with 64% of companies expecting the majority of deals to fall between US$51m and US$500m.
“Making the most of transaction opportunities, whether small or large, depends on a thorough understanding of the local market, regulatory environment and culture. Those that perform thorough due diligence and select the right partners will be best positioned for sustainable growth,” says Blaikie.