Real estate is again a compelling investment goal globally, with large and small investors entering the market via a variety of channels. For purely pragmatic reasons, millennials are entering the market in growing numbers, alongside sophisticated investors and family shops.
Millennial-driven decentralization in the real estate market is arriving in the form of more transparent, user-friendly mortgage products, the proliferation of alternative listing options, and crowdfunded investment platforms like Fundrise, Cadre, and Coimmvest. The proliferation of these crowdfunded platforms is opening the door for small investors to access previously impenetrable top deal commercial real estate opportunities. These same platforms are offering developers new channels of funding, further decentralizing the power of big banks and deal makers like CBRE.
The Flow of Capital
The robust growth of investment by institutional and private equity investors confirms the appeal of the market globally. Based on numbers collected by White & Case, PE investment activity in the real estate sector continued to grow in 2017 with global deal volumes reaching $40B across 47 deals. That is a remarkable 35 percent increase in deal volume relative to 2016, and it continues the strong trend of PE investments growth in the real estate sector in the post-financial crisis period. There was an increase in investment activity across all regions of the world led by Asia.