Australian infrastructure still holds appeal for investors

Australia remains an attractive location for infrastructure investment, according to the 2021 Australian Infrastructure Investment Report.

The report found 84% of surveyed investors were highly likely to invest in Australia. They were likely to do so in the next two to three years. Another 11% were considering investing in Australia.

This article looks at investors’ reasons for investing in Australia and their areas of interest.

Top reasons for investing in Australia

Ninety-four per cent of investors said Australia’s economic stability was the top reason for investing here. This was up from 68% in 2019. Find out more about Australia’s economic resilience.

Australia’s track record of infrastructure business was also a compelling reason for investment. Ninety-one per cent of investors nominated this reason, up from 81% in 2019. 

Eighty-five per cent of investors said Australia’s response to COVID-19 was another top reason to invest here. 

Areas of investment interest

Investors nominated social infrastructure assets as their top area of interest. Population redistribution and pressure on health and education systems have increased demand for these assets. Social infrastructure assets are also largely shielded from COVID-19’s effects.

Spurred by the pandemic, investors’ interest in telecommunications assets rose sharply. Seventy-two per cent said they were interested in these assets, up from 49% in 2019. Telecommunications was the second most appealing infrastructure asset type, equal to renewable energy generation.

ESG is a growing investment driver

Environmental, social and governance (ESG) factors are at the front of investors’ minds. Ninety-three per cent of investors say ESG has become more important over the past 2 years. Other findings include:

  • Eighty-two per cent believe fossil-fueled assets have become less attractive over the past 2 years
  • Over 50% agree non-traditional renewable energy, such as hydrogen and grid-scale battery storage, are more attractive than a year ago.

About the 2021 Australian Infrastructure Investment Report

Infrastructure Partnerships Australia surveyed 44 senior executives at major infrastructure organisations for the 2021 report. These organisations manage over $570 billion of investments worldwide. In the 2021 report, 84% of participants have invested in Australian infrastructure.

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