February 8, 2019

2019 is likely to see sustained growth in investment in alternatives. The social, technological and demographic changes that have supported current rates of growth are not projected to reverse. Opportunities vary significantly by region, so, to take advantage, investors will require both sector and local expertise.

Healthcare Opportunities:

One of the biggest health care sectors is long-term accommodation for seniors. The long-term increase in the elderly population fuels demand, and the current supply of senior accommodation does not match demand either in quantity or quality, providing an opportunity for further development and investment.

Student Housing Opportunities:

The U.K., U.S. and Australia have the largest stock of investable student housing and have dominated capital flows. New development in European markets such as Portugal, Italy and Spain has opened up opportunities for investment.

Hotels Opportunities:

In many capital and gateway cities, well-managed, centrally located hotels have enduring appeal and are well positioned for future performance growth as high land values and competition from other use classes make the development of new stock more challenging. The rapid growth of the sharing economy, such as Airbnb, seems to have expanded the market for accommodation by more than it has increased competition.

Data Centers Opportunities:

In North America, there is a group of emerging markets which are both close to existing population clusters and cheap sources of energy, such as Columbus, Las Vegas/Hillsboro and Montreal. Asia offers a wider array of underserved markets, India being a particular example. In Europe, the Nordics and Dublin are the main targets among hyperscale providers for self-build projects, alongside the more established data center markets of Frankfurt, London, Amsterdam and Paris.
2019 Global Real Estate Market Outlook

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