Institutional investors to increase real estate allocations

By James Buckley - Tuesday, September 05, 2017 10:08

Two in five (40%) institutional investors plan to increase their investment allocation to European commercial real estate over the next 12 months despite Brexit uncertainty being the number one challenge.

This is according to a new study with property-focussed institutional investors by BrickVest, the real estate investment platform.

The study highlighted that three in five (60%) institutional investors believe Brexit uncertainty will be the biggest challenge facing European investors in commercial real estate over the next 12 months. Nearly half (46%) thought political uncertainty would be the biggest challenge while nearly two in five (37%) suggested it would be low economic growth. 31% highlighted rising interest rates and 25% felt it would be rising inflation. A fifth (22%) cited increased regulation as the biggest challenge for investors over the next 12 months.

Despite these challenges, BrickVest’s research did highlight that Brexit could also present some European commercial real estate investment opportunities. Two fifths (39%) of institutional investors felt that Brexit would increase the number of investment opportunities in European commercial property. Just 22% felt the number of investment opportunities would decrease.

Eighteen months after its successful launch, BrickVest remains the only pan-European online crowd investing platform that allows its community of investors to invest directly and actively manage their investment in institutional grade commercial real estate investment opportunities.

Emmanuel Lumineau, CEO at BrickVest, said: “Commercial real estate has seen increased inflows from institutional investors for a number of years now as the asset class has become more and more mainstream. Clearly Brexit has created some uncertainties and will certainly present challenges for institutional real estate investors, however our research shows that European investors believe investment opportunities could increase.

“Since the vote in June last year, we’ve seen a huge increase in the number of investors joining the platform. We are experiencing strong levels of demand from investors for property as an asset class and it is clear that many of our users want to take advantage of the vote.”

jbuckley@costar.co.uk

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