Appetite for high-risk ventures nosedives

Willingness among international investors to enter high-risk commercial property ventures has dropped by 41 percent in the past 12 months, according to BrickVest.

The online investment platform provider has said that opportunistic and speculative development opportunities have fallen out of favor among international real estate investors, with 53 percent of investors now backing moderate-risk strategies.

The company’s latest commercial property investment barometer — which captures sentiment from over 5,000 investors — has revealed that 29 percent of investors are now opting for low-risk strategies such as core and core-plus. On a country basis, investor support for German commercial real estate has fallen by 36 percent in the past year and is now equal to the United States, which has seen a 23 percent rise over the same period. The United Kingdom remains the most popular destination with 33 percent of real estate investors choosing it as their top location.