US property investor sentiment strong
According to the Colliers International 2015 Global Investor Sentiment Report, investors are buoyant on US economic fundamentals and – by extension – the outlook for the US property market in 2015.
The Global Investor Sentiment Survey canvasses opinions globally from major investors across a broad spectrum from institutions to private equity. This year’s survey captured survey responses from over 620 investors from North America, Latin America, Australia, New Zealand, Europe, Asia and the Middle East.
“In addition to stronger demand, low supply-side pressure in most markets and property types is contributing to tightening in the US real estate markets”, stated the survey report.
“Lender caution, high construction costs (which continued to increase through the recession) and still-elevated vacancy rates in many markets and property types are restraining development.” The construction activity that is occurring, according to the report, is tending to be targeted, concentrated in the strongest markets and submarkets, such as Houston, San Francisco, Silicon Valley, Boston and New York.
The strength of the US property markets compared to a number of other global markets means that it is attracting far-flung investor interest. Unsurprisingly, the survey results also indicate that US investors are avoiding the continued geopolitical turmoil and slow recovery in many global markets.
As far as European markets are concerned, “just over half (54%) of respondents agreeing or strongly agreeing that the crisis in Ukraine is impeding planned investment in the EU, and most disagreeing or strongly disagreeing (75%) that the Eurozone crisis is over.”
Overall sentiment regarding investment conditions remains positive, says the report, with 80% of US survey respondents confident that conditions will either improve or remain the same over the year.
[Image: Front cover of Colliers International 2015 Global Investor Sentiment Report]