Global real estate market stabilisation is expected to take root in a return to relative rationality, according to the 2023 Colliers Global Investor Outlook study.

Colliers (NASDAQ: CIGI) (TSX: CIGI), a leading global real estate services and investment management firm, has announced its 2023 Global Investor Outlook study, which predicts that the global real estate market will be stabilized by mid-2023.Despite the volatility of geopolitical instability, economic disruptions, and uneven monetary policy in the last year, countries like the United Kingdom and the United States have already seen a rapid price reset, however, this has not been universal.Investors can therefore expect huge shifts in how the reset unfolds across sectors and markets in 2023.Asia Pacific Investors to increase exposure despite challenges Globally, Asia Pacific is the region with the most optimistic outlook on economic development.

In comparison, 43% of Asia Pacific respondents expect positive growth as a result of global economic growth, outpacing EMEA (38%) and the Americas (28%), according to Philip Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.Real Estate Investments in India have a wider client base, a strong market presence, and a strong market presence in equity capital markets, including REITs, listed equities, and capital inflows across the value chain of Office and Residential Development.With a geopolitical scenario emerging in Asia and a consistent government policy framework, the industrial, logistic, and Data Centers industries in India are expected to see significant growth.In the next five years, there will be plenty of dry powder to be invested in the market thanks to global funds partnering with Indian producers.

Future challenges and opportunitiesCurrent inflation and interest rates are fueling an increase in operating and construction costs, which have already been exacerbated by supply chain issues and energy price increases.Investors in Asia Pacific cited interest rates (88%), increased construction costs (87%), and higher asset operation costs (77%) as the biggest challenges for the year ahead that would have the biggest impact on investors' ability to implement investment strategies.Interest rates were also the top problem in the world (88 percent), followed by inflation (74%) and supply chain disruption (68%).Core assets dominateMoney fluctuation has prompted investors to concentrate on fundamentals and defensive strategies.Asia Pacific investors are most likely to invest in offices (68 percent), industrial & logistics (I&L), and multifamilybuild-to-rent (42 percent), the same as investors worldwide.

Retail is also receiving increasing attention, with 52% of respondents in Asia Pacific investing in suburban malls (the highest percentage worldwide), and 48% in CBDhigh street retail.A major focus in investor decision making is emerging as a result of environmental, social, and governance (ESG) factors.This is owing to a shift to quality in major office markets, as well as the need to respond to customer demands and balance out long-term asset operation costs.In Asia Pacific, two-thirds (66%) of investors have already taken or are currently taking action on their assets' environmental performance (e.g., a capital improvement, disposal, or acquisition initiative that includes ESG considerations), versus 75% of investors globally.

The 2023 Colliers Global Investor Outlook Report was produced in October and November 2022 and is based on over 30 in-depth interviews with Colliers Capital Markets global and regional experts.Over 750 investors were polled around the world, with 365 from Asia Pacific participating.This is the third edition of Colliers' annual outlook for global property investors.Contact Us Sukanya Dasgupta, Senior Director & Head, Marketing & Communications Colliers India Sukanya.dasgupta@colliers.com +91 9811867682Riddhi Vira, Senior Director, Marketing and Communications Colliers India riddhi.vira@colliers.com (TSX: CIGI) is a With operations in 63 countries, our 18,000 innovative professionals work collaboratively to provide expert real estate and investment advice to clients.

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