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Investors favour Germany over UK for commercial real estate for first time - Q3 2017

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Investors favour Germany over UK for commercial real estate for first time - Q3 2017

・33% of investors favour Germany, according to the latest BrickVest commercial property investment barometer.
・27% favoured UK, 17% the US and 15% France.
・UK, French, German and US investors are now less favourable towards the UK.
・Average investor risk appetite for commercial property increased to 52% from 48% last year.

The UK saw a drop from 33% to 31% in the last quarter and from 32% in the same Barometer 12 months ago. Nearly one in five (17%) selected the US, which represents a slight increase from 12 months ago (16%), while France was selected by 15%, the same as Q3 last year.

The Barometer also revealed that UK, French, German and US investors are now less favourable towards the UK since last year. 45% of UK, nearly a quarter (21%) of US, a fifth (19%) of French and 18% of German investors suggested they favour the UK this quarter, representing a decrease from last year across the board from 46%, 26%, 28% and 21% respectively.

According to BrickVest’s investors, the average risk appetite for commercial real estate continues to rise to 52% from 49% last quarter and from 48% this time last year, meaning a sentiment shift from low to balanced risk. German investor risk appetite increased significantly from 50% last year to 62% while the US saw an increase to 54% (47% in Q3 2016). UK investor risk appetite also increased from 46% to 47%. However in France, average risk appetite decreased significantly from 62% to 45%.

BrickVest’s Barometer also showed that the investment objective for the majority (55%) of its online investors is capital growth compared to 33% who said income.

Source : BrickVest

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