Flight to safety quickens as cycle moves into later stages
Support for high-risk European real estate investment strategies has fallen dramatically over the past 12 months as analysts warn that many sectors are fully priced, reflecting the fact that investors are bracing themselves for the later stages of the property cycle.
BrickVest’s latest commercial property investment barometer, which crunches data from 4,000 international professional real estate investors, shows a 24 percent year-on-year decline in sentiment from Q1 2017 to Q1 2018 towards high-risk property investment strategies such as opportunistic and speculative development. It also shows that appetite for low and moderate risk strategies including core and core-plus has risen by 16 percent and 5 percent, respectively.
The search for liquidity has surged by 40 percent over the past year, suggesting that investors are increasingly focused on easier divestment should the market cycle begin to turn. BrickVest has also said that UK investors have, on average, become