Global real estate investment to reach $45 trillion by 2020

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Burj-KhalifaDriven by rapid urbanisation and demographic changes, especially in emerging markets, global investment in the real estate sector is likely to increase by 55 per cent to $45.3 trillion by 2020 from $29 trillion in 2012, according to a new report by PwC.

The report Real Estate 2020: Building the Future said that the investment in developing Asia-Pacific countries is likely to rise by 140 per cent to $10.2 trillion by 2020 from $4.3 trillion in 2012.

“Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years,” PwC Executive Director (Capital Markets) Shashank Jain said.

The expansion will be the greatest in the emerging economies, where economic development will lead to better tenant quality and, in some countries, clearer property rights, and will play out across housing, commercial real estate and infrastructure.

According to the report, the investment in Asia-Pacific countries is highest compared with the US, Europe, Latin America, developed parts of Asia Pacific and even Sub Saharan Africa and Middle East and North Africa.

Jain observed that intense competition for prime real estate will force real estate managers and investors to seek out new opportunities for yield.

“Yet the growing and changing real estate world will present them with a far wider range of risks, which they must be equipped to manage,” he said.

Meanwhile, the growing middle class and ageing populations in these emerging economies are boosting the demand for newer types of real estate, Jain said. While office, industrial, retail and residential will remain the main sectors, affordable housing, agriculture, health-care and retirement accommodation will become significant sub sectors in their own rights, he added.

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Reading Time: 1 minute

Driven by rapid urbanisation and demographic changes, especially in emerging markets, global investment in the real estate sector is likely to increase by 55 per cent to $45.3 trillion by 2020 from $29 trillion in 2012, according to a new report by PwC.

Reading Time: 1 minute

Burj-KhalifaDriven by rapid urbanisation and demographic changes, especially in emerging markets, global investment in the real estate sector is likely to increase by 55 per cent to $45.3 trillion by 2020 from $29 trillion in 2012, according to a new report by PwC.

The report Real Estate 2020: Building the Future said that the investment in developing Asia-Pacific countries is likely to rise by 140 per cent to $10.2 trillion by 2020 from $4.3 trillion in 2012.

“Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years,” PwC Executive Director (Capital Markets) Shashank Jain said.

The expansion will be the greatest in the emerging economies, where economic development will lead to better tenant quality and, in some countries, clearer property rights, and will play out across housing, commercial real estate and infrastructure.

According to the report, the investment in Asia-Pacific countries is highest compared with the US, Europe, Latin America, developed parts of Asia Pacific and even Sub Saharan Africa and Middle East and North Africa.

Jain observed that intense competition for prime real estate will force real estate managers and investors to seek out new opportunities for yield.

“Yet the growing and changing real estate world will present them with a far wider range of risks, which they must be equipped to manage,” he said.

Meanwhile, the growing middle class and ageing populations in these emerging economies are boosting the demand for newer types of real estate, Jain said. While office, industrial, retail and residential will remain the main sectors, affordable housing, agriculture, health-care and retirement accommodation will become significant sub sectors in their own rights, he added.

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