With everything that has happened in recent months, including the Federal Reserve's interest rate hike and the turmoil in global equity markets, many investors will likely be seeking refuge in real estate.
For them, real estate may seem like a less risky investment with potentially significant returns.
The year is already shaping positively for real estate worldwide. To be sure, that could change. However, a solid U.S. economy and strong demand for housing and business space throughout the world should keep the real estate industry percolating. A recent report by the real estate company Collier's International indicates as much.
Let's examine some of the factors that will shape the landscape in 2016.
1. Growing Appeal
Sentiment about real estate has been rising for several years in the U.S. Last year was a good one for the industry. This momentum should continue and become a more pronounced global trend.
Due largely in part to the volatility of other markets, the appeal of global real estate has increased exponentially.
Roughly a year ago, global real estate kicked off a nine-month period which saw $625 billion allocated toward direct property investments. That number eclipsed the previous year by about 11%. Many investors clearly find certainty in real estate, a trend corroborated by Colliers' 2016 Global Investor Outlook. The survey of more than 600 investors globally found that more than half would likely be allocating more capital in real estate in 2016. Of that number, 51% own multi-asset portfolios.