One in three, or 33 percent, commercial real estate investors have suggested that Germany is their preferred region to invest in, according to BrickVest. This is the first time that Germany has been chosen as the number one region to invest in and ahead of the U.K., which was selected by approximately a quarter of investors (27 percent).
The United Kingdom saw a drop from 33 percent to 31 percent in the last quarter and from 32 percent in the same Barometer 12 months ago. Nearly one in five (17 percent) selected the United States, which represents a slight increase from 12 months ago (16 percent), while France was selected by 15 percent, the same as third quarter last year.
The Barometer also revealed that U.K., French, German and U.S. investors are now less favorable toward the United Kingdom since last year. Forty-five percent of United Kingdom, nearly a quarter (21 percent) of United States, a fifth (19 percent) of French and 18 percent of German investors suggested they favor the U.K. this quarter, representing a decrease from last year across the board from 46 percent, 26 percent, 28 percent, and 21 percent, respectively.
According to BrickVest’s investors, the average risk appetite for commercial real estate continues to rise to 52 percent from 49 percent last quarter and from 48 percent this time last year, meaning a sentiment shift from low to balanced risk. German investor risk appetite increased significantly from 50 percent last year to 62 percent, while the United States saw an increase to 54 percent (47 percent in third quarter 2016). U.K. investor risk appetite also increased from 46 percent to 47 percent. However in France, average risk appetite decreased significantly from 62 percent to 45 percent.
BrickVest’s Barometer also showed that the investment objective for the majority (55 percent) of its online investors is capital growth compared to 33 percent who said income.
The full report is available at https://brickvest.com/barometers.
