UK rated as most attractive commercial real estate market

real estate investment

In March 2017 nearly one in three selected the UK as their preferred commercial real estate investment location, down slightly from 31 per cent in March 2016.

The survey found that a quarter of respondents favour Germany as their second location of choice for commercial real estate opportunities, the same as last year. Less than one in five selected the US which represents a fall from 21 per cent last year. The same number also selected France although this is an increase from 14 per cent in 2016.

The Barometer revealed that both German and French investors are less favourable toward the UK since March last year, however. Less than one in five French and the same number of German investors suggested they prefer the UK in March this year compared to 24 per cent and 22 per cent respectively last year. US investor sentiment towards the UK fell marginally from 23 per cent to 22 per cent.

Despite Brexit and the potential of a second Scottish referendum being called in the next few years, nearly half of BrickVest’s UK commercial real estate investors selected their home market as their preferred location, up from 44 per cent in March 2016. BrickVest’s UK investors suggested Germany was second, the US third and France fourth in terms of preferred locations to invest.

According to BrickVest’s investors, average risk appetite Index amongst its US investors remains growth oriented and relatively unchanged in the last 12 months at 56, 58 in 2016. UK investor risk appetite also remained largely the same at 55, 54 in 2016, despite choosing to leave the EU. This indicates that investors’ risk appetite is fairly balanced albeit slightly leaning towards the riskier spectrum.

The Barometer also showed that the investment objective for the majority of its online investors is capital growth compared to 37 per cent which said income.

Emmanuel Lumineau, CEO at BrickVest, commented: “Despite Brexit, our latest Barometer shows the UK remains the preferred location to invest in from our global investor base but uncertainty created is beginning to take effect. Since the vote in June, we’ve seen a 72 per cent increase in the number of investors joining the platform. We have seen plenty of appetite from investors for property as an asset class and it is clear that many of our users want to take advantage of the vote.

“BrickVest is a truly pan-European platform. The last 12 months have been very exciting year and both sponsors and investors have strongly backed our approach to democratise access to institutional real estate investments, in a highly secured and low cost environment.”

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