Alternatives accounted for over £16.3 billion of transactions in 2018, an increase from 2017's £15.7 billion figure. This survey by JLL's research team sets out what investors can expect for 2019 - a few headline points are:
- Institutional investors now account for 40% of respondents to the survey
- 79% of respondents have exposure in more than one sector and 51% also invest in alternatives indirect
- Student housing is the most popular choice, closely followed by leased hotels and developing multifamily / retirement living sectors
- The latter two sectors are expected to grow noticeably in 2019
- Common theme across all alternatives is the opportunity that the shortfall in supply offers compared to demand, specifically institutional quality, modern, purpose-built assets. This remains the core reason for investors targeting alternatives
Regardless of what impact economic uncertainty may have on the commercial market, the fundamentals behind Alternatives remain unchanged and there is still a strong need for more purpose-built supply across all sectors to meet growing demand. The outlook for 2019 remains robust and market share should increase further as both existing investors expand, and new entrants seek to gain a foothold. Read our report to find out more.