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Investor risk appetite rises as UK remains most attractive global commercial real estate market - Q2 2017

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Investor risk appetite rises as UK remains most attractive global commercial real estate market - Q2 2017

・31% of investors selected the UK as their preferred location, according to the latest BrickVest commercial property investment barometer.
・24% favoured Germany, 22% the US and 15% France.
・Average risk appetite Index for commercial real estate increased to 49% from 47% last year.
・UK investor risk appetite also increased from 49 to 51 despite the UK choosing to leave the EU.

BrickVest’s Barometer found that a quarter (24%) of real estate investors favour Germany as their location of choice for commercial real estate opportunities; however, this represented a fall from 28% in June 2016. More than one in five (21%) selected the US, the same as last June, while France also saw an increase from 13% in June 2016 to 15% in June this year.

The Barometer also revealed that French, German and US investors are more favourable towards the UK since June last year. Nearly a quarter (24%) of French, a fifth (19%) of German and 23% of US investors suggested they prefer the UK in June this year, representing an increase from last year across the board from 22%, 18% and 20% respectively.

According to BrickVest’s investors, average risk appetite Index for commercial real estate increased to 49% from 47% in June last year, meaning a sentiment shift from low to balanced risk. French investor risk appetite increased significantly from 33% to 55% while the US saw an increase to 50% (47% in June 2016). UK investor risk appetite also increased from 49% to 51% despite choosing to leave the EU while in Germany it remained stable at 48% (the same in June 2016).

BrickVest’s Barometer also showed that the investment objective for the majority (47%) of its online investors is capital growth compared to 37% which said income.

Despite Brexit, more than four in ten (43%) BrickVest UK investors selected their home market as their preferred location. UK investors highlighted Germany as second (20%), the US (19%) third and France (13%) fourth in terms of preferred locations to invest.

Source : BrickVest

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