Alvarez & Marsal – An Outlook on Global Real Estate Investment Finding

A survey conducted by Alvarez & Marsal (A&M) with 101 real estate fund managers worldwide revealed that despite the challenging economic conditions, investors are becoming more optimistic about real estate investments in the next 12 to 18 months. This comes after a period of rising costs and interest rates, sluggish economic growth, and significant shifts in the global real estate market. The survey showed that 80% of investors plan to make significant investments in the next year and a half, focusing primarily on North America, Europe, the UK, and Asia. The areas of interest for investment include hospitality and leisure, as well as repositioning strategies for offices and retail spaces, which have been impacted by changes in their use due to the pandemic. Investors in the survey also expressed a strong focus on sustainability, ethics, and governance, with 97% stating that environmental, social, and governance (ESG) factors are important in their investment strategies. Key areas of focus for ESG-oriented investors include energy-efficient upgrades, smart building technology, and green building certifications. The report aims to provide insights into where real estate investment is heading after a period of uncertainty in the global economy and significant changes in the real estate market. Overall, the survey indicates a more positive outlook for the market, with investors expecting improvements in the cost of capital and investment returns.