5 July 2017
Reporter: Theo Andrew

UK still preferred market for global real estate investors as risk appetite rises

The UK remains the most attractive global commercial real estate market for investors, according to a BrickVest poll.

Despite the UK’s decision to leave the EU, 31 percent of investors favoured the UK real estate market, the same as in 2016, while investors’ willingness to take a risk in the UK rose from 49 percent to 51 percent.

In a survey of 3,000 investors, Germany emerged as the second most popular market with 24 percent of investors selecting the location, while 21 percent chose the US.

Risk appetite in the US grew from 47 percent a year ago to 50 percent, while this figure remained at 48 percent in Germany.

France was the fourth most popular market with 15 percent of commercial real estate investors selecting the country, up from 13 percent in 2016. Risk appetite rose significantly in the country, however, increasing from 33 percent to 55 percent.

According to the poll, investors from France (24 percent), Germany (19 percent) and the US (23 percent) are more favourable towards the UK compared to this time last year, up from 22 percent, 18 percent and 20 percent, respectively.

Emmanuel Lumineau, CEO at BrickVest, said: “Despite a series of significant events over the past 12 months including Brexit, our latest Barometer shows the UK remains the preferred location to invest in from our global investor base.”

BrickVest also found that 43 percent of UK investors preferred their home market, with 20 percent choosing Germany, 19 percent the US and 13 percent France.

Lumineau added: “Since the vote in June last year, we’ve seen a 72 percent increase in the number of investors joining [BrickVest] and are seeing plenty of appetite from investors for property as an asset class.”

He said: “For the first time ever private investors can access the same investment opportunities as large institutional investors such as pension funds and insurance companies.”

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