More than 60% of respondents said that enquiry levels have increased compared to September 2020, with just 4% stating that enquiries had declined. Improved enquiry levels should translate to an increase in purchasing activity, with CBRE forecasting investment volume to increase by 10% in 2021.
Selling intentions among real estate funds, private investors and property companies have increased in the opening months of 2021.
Risk appetite is rising as investors seek higher returns amid the tight yield environment.
While most cap rates remain unchanged, cap rates for logistics assets continue to compress. Those for top quality office assets have compressed by up to 25bps, reflecting robust investor demand for income producing assets.
Pricing expectations between buyers and sellers are narrowing as fewer purchasers seek significant price discounts.
Data centre yield will be influenced by logistics yield compression across the region.