The new Global Report from Grant Thornton "Uncovering opportunities for overseas investment and growth" has received a mention in the Wall Street Journal. Given the continuing growth in cross border property investment, the report discusses the influences on decisions around where and in what to invest.
We were surprised to discover how many executives globally suggested their decisions were ultimately made on the basis of what felt right.
While instinct and experience are vital, the report remind seeks to remind investors about the importance of exploring emerging opportunities rather than going with the obvious choices.
Analysis, schmalysis. When buying real estate in foreign countries, most investors just go with their gut. Instinct is the driving force behind $250 billion of overseas commercial property investment, according to a survey from accounting firm Grant Thornton. When the firm asked senior executives from all business sectors about what drives their decision to make significant investments in foreign markets, over half responded “it simply feels like a good fit.” Even when investing in complex deals, people are drawn to familiarity, said Sian Sinclair, global leader, real estate and construction, at Grant Thornton. Education was shown in the report to be particularly influential to instinctive buys, “where the students go, the real estate money follows,” it says.