Global real estate investment to reach $45 trillion by 2020

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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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. 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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