Market Spotlight: Real Estate

28 June 2017

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Real estate M&A has been a traditional safe haven for investors amid market volatility. Transactions in the sector comprised 9% of global activity in Q1 2017 with about US$70bn worth of deals — 14% higher than the US$61.5bn in deals for Q1 2016. In the current volatile environment, real estate will be attractive to many buyers for its reliability. Real estate M&A value reached an eight-year high in 2015, and remained steady throughout 2016. However, investors are cautious in light of expected changes to regulations and reporting requirements in the coming 12 months.
 
In order to find out the latest trends in the real estate sector, Donnelley Financial Solutions commissioned Mergermarket to interview global dealmakers for their insights.
 
Key findings include:
 
  • Asia-Pacific is the region predicted to receive the most real estate deals in the next 12 months (cited by 68% of respondents).
  • Residential, healthcare, and office buildings are the areas where most deal interest will be seen in the next year (each named by 24% of respondents).
  • PE firms were named as the most likely type of buyer to be active in real estate over the next 12 months (32% of respondents).