A survey conducted by JLL with Belgian and foreign investors
In your opinion, what defines the 2017 Belgian investment market in one word?
Momentum for sellers,Time to sell,Plain vanilla,Strong,Stability,Expensive,Liquid,High demand for core core product, no liquidity for secondary locations,Yield compression,Binary,Affordable,Attractive,Complex,Lack of products,Lack of tenants,Spread between huge international interest for core plus investment and local players,Unexpected momentum in 2017
In your opinion, what will define the 2018 Belgian investment market in one word?
Need for quality products,Pressure to find projects,Stability,Yield rising,Increased demand for core product, foreign investors looking for yield and going for secondary locations,Internationalisation of buyers,Yield compression,Local players adapting to the new international context,Internationalisation of buyers,Rental growth - finally!,Complex,Still hot but realistic,
⁃ Results 2018: good balance between core and non-core investments.⁃ Results 2017: similar results.⁃ Not part of 2015 survey.⁃ Conclusion: still moderate appetite for risk: Core are favoured, core+ with higher yield and acceptable risk are attractive options.
⁃ Results 2018: 60% no change, 27% increase.⁃ Results 2017: 69% no change, 19% increase.⁃ Results 2015: 51% no change, 39% increase.⁃ Conclusion: investors are confident that banks will continue to fund real estate transactions.
⁃ Results 2018: Fund managers the most active (53%).⁃ Results 2017: Institutions most active (42%). ⁃ Not part of 2015 survey.
⁃ Results 2018: Selling real estate will remain as attractive as 2017 (53%).⁃ Results 2017: Selling real estate will remain as attractive as 2016 (50%).⁃ Results 2015: Selling real estate is more attractive than 2014 (50%).⁃ Conclusion: no major change vs. 2017, compared to 2015 investors estimate it is more attractive to sell.
⁃ Results 2018: Buying real estate will remain as attractive as 2017 (53%).⁃ Results 2017: Buying real estate will remain as attractive as 2016 (52%). ⁃ Results 2015: Buying real estate will remain as attractive as 2014 (59%).⁃ Conclusion: no major change vs. 2017, but compared to 2015 more investors believe it is less attractive to buy.
⁃ Results 2018: preference for Brussels (73%), 25% ready to invest in secondary cities.⁃ Results 2017: preference for Brussels (59%), 37% ready to invest in secondary cities.⁃ Not part of 2015 survey.⁃ Conclusion: Brussels with its fairly high liquidity and large variety of risk-classes (core / core+ / value add) is favoured by investors.
⁃ Results 2018: Overweights Logistics (54%) Retail and Offices Average (54% and 55%).⁃ Results 2017: Slightly Overweight Logistics (47%), Retail and Offices Average (42% and 49%).⁃ Not part of 2015 survey.⁃ Conclusion: investors are ready to invest more in Logistics, and maintain positions in retail and offices.
⁃ Investors are confident that there are attractive opportunities on the market in 2018 ⁃ Yield compression for retail and offices seems to have come to an end, but there is potential left for Logistics in 2018 ⁃ Investors would therefore maintain unchanged their office and retail investments, but are ready to invest more in Logistics ⁃ Investors will continue to focus on core and core+ strategies.
⁃ Results 2018: stabilisation for offices and retail, compression for logistics. ⁃ Results 2017: stabilisation for all asset classes. ⁃ Results 2015: compression for offices, stabilisation for retail and logistics. ⁃ Conclusion: investors believe there is potential left in Logistics, and are more cautious for other asset classes.