Intelligent Investment

2023 Global Multifamily Investor Intentions Survey

July 20, 2023 3 Minute Read

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Introduction

CBRE's 2023 Global Multifamily Investor Intentions Survey reveals positive investor sentiment despite rising interest rates, less credit availability and the potential for a recession. As a subset of the overall 2023 Global Investor Intentions Survey, conducted in late 2022, this report reveals expectations of investors specifically targeting multifamily investment and, comparatively, the expectations of investors in all other property types.

Multifamily fundamentals are expected to remain stable this year, suggesting that any potential price declines will be the lowest of any commercial real estate sector. That’s why, multifamily assets are the top acquisition target of investors for the first time in the Global Investor Intentions Survey’s seven-year history.

Sector Preference

Multifamily is the primary sector target for 30% of survey respondents this year, up from 23% in 2022.
Industrial & Logistics fell to the second most preferred asset type this year, favored by 23% of survey respondents versus 42% last year.

Multifamily Sector Alternatives

Student Living maintained the top spot over Seniors Housing as the most preferred multifamily alternative.
Build-to-Rent/Single-Family Rental Housing (BTR/SFR) was the overwhelming top choice (68%) for respondents from the Americas.

Location Preferences

Global gateway markets were most preferred by Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) respondents. Tokyo topped the list for APAC, while London took the top spot in EMEA.
U.S. Sun Belt markets again dominated investor preferences in the Americas, largely due to their strong fundamentals.
While Dallas/Ft. Worth and Austin maintained the top spots for the Americas, two new markets—Miami/South Florida and Raleigh-Durham—entered the top five.

Pricing & Strategy

Approximately half of survey respondents expect to see small or no price discounts for multifamily assets this year.
While 44% expect mid-to-large discounts, this is the lowest percentage of any other asset type.
21% of multifamily investors expect to increase their allocation to real estate, while only 14% expect to allocate less. The majority expect no change from 2022.
50% of multifamily investors view high-risk (e.g., opportunistic, distressed and debt) as the most attractive investment strategy in 2023. This was more than both office (40%) and industrial (45%) investor groups.