Investors’ changing sentiment towards core markets for infrastructure investment
GIIA's twice-yearly pulse surveys provide a unique insight into investors’ changing perceptions of country and sector attractiveness. Policy & Research Manager Vlad Benn examines trends over the last four years
Image above is construction of a bridge in Merritt Island, Florida, USA. Bridge building between public and private sectors is key to U.S. investment.
The pulse surveys by the Global Infrastructure Investor Association (GIIA) compare appetites to invest across geographies and sectors around the world, and identify the key barriers to further investment. This information – available nowhere else - helps GIIA and its members to engage with governments and regulators on ways to attract more private investment in infrastructure.
This report examines trends and changes in investor sentiment over the four-year period since the surveys began at the start of the Covid-19 pandemic in early 2020. It explores trends across three topics that help governments understand how their country or region is faring in comparison to others: i) country attractiveness, ii) sector attractiveness and iii) barriers to investment.
Executive Summary
- Since the surveys began in 2020, the U.S. has been the most attractive destination for infrastructure investors. No other country has been able to close the gap, with the UK and Nordics having come closest in Q2 2022.
- Over the same period, the Nordic countries, Germany, Spain and France have been the most attractive locations in Europe, while the UK has suffered the largest fall in sentiment of any European country.
- Europe as a whole edges the combined Americas in terms of average attractiveness over the last four years.
- Higher than expected GDP growth and loosening of Covid-19 restrictions saw all investment sectors reach peak attractiveness in the surveys in Q4 2021 and Q4 2022.
- Telecoms infrastructure has proved the most attractive sector, followed by ‘traditional’ renewables (wind, solar), batteries, smart grids and energy from waste (EfW).
- The data centres sub-sector of telecoms is the only one to maintain a high level of attractiveness throughout the four-year period, and has the best consistency of sentiment compared to all other sectors.
- Regulated utilities and toll roads are more attractive in the Americas than in Europe.
To read more on this, download the full report at the top of this page.