2018 sees flight to safety among international real estate investors
Sentiment among international commercial property toward high-risk real estate investment strategies has dramatically fallen over the past 12 months, according to BrickVest.
BrickVest’s Barometer, which gathered data from 4,000 international professional real estate investors, shows interest in high-risk property investment strategies, such as opportunistic and speculative development, declined 24 percent from first quarter 2017 to first quarter 2018. Appetites for low- and moderate-risk strategies — including core and core-plus — have risen by 16 percent and 5 percent, respectively. The Barometer shows investors’ overall risk appetite has fallen by an average of 10 percent, with favorability toward secondary assets dropping by 9 percent and prime assets rising by 6 percent.
“Commercial real estate markets are attracting record levels of capital, but the Barometer strongly indicates that investors are becoming more attracted to lower-risk strategies,” said