CBRE Releases 2016 Global Real Estate Investment Outlook

Hilt Tatum IV is the founder, CEO, and president of iPoint Capital Partners, a Panama-based investment firm active in markets throughout Europe, Asia, South and Central America, and the Caribbean. Hilt Tatum IV directs the firm’s investments in the group private equity and venture capital spheres, focusing on a wide range of sectors including global real estate.

According to a report compiled by commercial real estate firm CBRE, the global real estate market is poised to receive a huge influx of investments in 2016. The 2016 edition of the company’s annual Global Investor Intentions Survey reveals that investors around the world plan to deploy approximately $1.16 trillion in real estate investments over the coming year. This would reflect a year-over-year capital flow increase ranging between 3 and 6 percent. Survey responses suggest that 30 percent of these property investments will occur in the office sector. Commercial retail comprises the second-most favored asset type, and industrial and logistics tied with multifamily properties for third place.

CBRE surveyed 1,250 of the world’s leading property investors to compile their 2016 projections. Of these respondents, 82 percent indicated that their real estate investment activity would either increase or stay the same compared to 2015. This is down slightly from 2015, when 86 percent of respondents planned to increase or stabilize their real estate investments, and from 2014, when 93 percent showed the same optimism. Rather than implying a change in the performance of the real estate market, this small decline likely reflects growing investor caution regarding pricing, interest rates, and equity volatility.