Germany loses favour as commercial real estate hotspot

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  • Number of investors favouring Germany fell by 11% during last quarter
  • UK is now the most popular destination for commercial real estate investment (increase from 27% in Q3 to 29% in Q4)
  • The US and France have also gained popularity among investors

 

Germany is no longer the most popular destination for commercial real estate investment, according to BrickVest’s latest commercial property investment barometer (‘the Barometer’).[1] Formerly the most popular location in Q3 2017, Germany has now fallen in favour among investors behind the UK, US and France.

Germany saw a drop in popularity from 34% to 23% in the last quarter, marking its lowest rating since Q2 2016. The UK, however, rose from 27% to 29% in Q4 2017, managing to sustain its favourability by consistently ranking above 25%.

Both the US and France have also gained popularity with investors, with nearly one in five (19%) preferring the US over other regions and 18% now selecting France as their location of choice (up 4% since Q2 2016).

The Barometer also revealed that the hunt for income ranked highest (38%) as the primary investment objective of BrickVest investors this past quarter. This has risen by 6% from 32% in Q3 2017.

Notably, interest in secondary cities as target markets continues to steadily increase (from 37% in Q3 2017 to 41% by the end of 2017). These include Birmingham, Newcastle, Bristol etc.)

Emmanuel Lumineau, CEO at BrickVest, commented: “Our latest Barometer reveals that Germany is no longer the favoured destination for commercial real estate investment, contrary to its position in Q3 2017. Rather, the UK has once again become the most popular region for our investors.”

“There have been similar changes in other aspects of the data, including the greater emphasis placed on the hunt for income and the growing popularity of secondary cities as target markets. As the year progresses and we continue to conduct our Barometer, it will be interesting to see how the industry adapts to these underlying factors affecting the real estate market.”

The full report is available at: http://brickvest.com/barometers

About BrickVest

The BrickVest electronic investment platform (“BrickVest”) (www.BrickVest.com) allows investors to invest in institutional grade investment opportunities (“Product”) and actively manage their investment portfolio.

Three years after its successful launch, BrickVest remains the only pan-European online real estate solution platform that allows its community of investors to invest directly and actively manage their investment in institutional grade commercial real estate investment opportunities. BrickVest also offers proptech and regtech corporate services to real estate developers.

BrickVest is operated by BrickVest Markets Ltd, an Appointed Representative of BrickVest IM Ltd, which is authorised and regulated by the Financial Conduct Authority, registration number 737644. BrickVest Markets Ltd and BrickVest IM Ltd are 100% owned subsidiary of BrickVest Ltd, a limited company registered in England and Wales (No. 09294583), with its registered office at 81 Rivington Street, EC2A 3AY London.

 

About the BrickVest commercial property investment Barometer

The BrickVest commercial property investment Barometer is carried out by BrickVest with its various investors every quarter. The Barometer reveals and tracks investor sentiment regarding the commercial property investment market, including risk appetite, their preferred locations for investment, investment objectives and more.

This quarter’s results also show that BrickVest’s investors are back to a balanced risk appetite (index 50), after previous quarter’s high index (52). However, the overall risk appetite across major countries has increased significantly compared to Q4 2016 (Germany: increase from 41 to 49, France: increase from 46 to 52, the US 43 to 52, the UK: remained high at 52).

[1] Sample of 3,000 international BrickVest professional real estate investors polled online on a quarterly basis. Risk is calculated on a scale from 0 (low risk – income) to 100 (high risk – capital).