Survey of investors: Coronavirus crisis causing significant changes in investment strategies

The COVID-19 pandemic has led to a significant shift in the investment strategies of institutional real estate investors in Europe. “Lower risk, lower return” is the mantra of the moment. Some 58 percent of the 150 professional investors in Germany, France and the United Kingdom surveyed by Union Investment for its investment climate study are currently pursuing such a strategy. The figure was only 35 percent prior to the outbreak of the pandemic.

The shift toward lower risk and lower returns is especially pronounced in the United Kingdom, where security is the main investment motive for 79 percent of those surveyed. Before the pandemic, it was 50 percent. Nonetheless, there is no general reluctance to invest. Only 5 percent of the European investors in the survey intend to avoid all investment in real estate in the current phase.

The coronavirus pandemic also has triggered a significant shift toward climate-friendly investment by institutional investors, with 54 p