Colliers Report: Debt Will Lead the Way for Investment in 2015
Debt is back in style! A Colliers survey is showing a shift away from equity-led investment to debt-heavy investment, signaling a “new phase in the real estate cycle.”
The 2016 Global Investor Outlook survey says 82% of investors are likely to use debt in their future investments, up from 78% last year. Europeans showed the biggest increase in likely debt use, from 59% to 90%, as they take advantage of low interest rates—with some target rates below zero.
The report, which looks back on the first nine months of 2015, also showed an 11% jump in total global property investments from 2014, up to $625B—and that’s set to continue. More than half of investors surveyed plan to increase their investments over the next 12 months.