[Barometer Q4 2017] Germany loses favour as commercial real estate hotspot

|
[Barometer Q4 2017] Germany loses favour as commercial real estate hotspot

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

[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).

Download this resource in PDF

Available translations

Latest news

[Infographic] The thoughts of real estate managers in the context of COVID-19
May 22, 2020

[Infographic] The thoughts of real estate managers in the context of COVID-19

What is real estate developers'outlook on real estate industry after the COVID19 crisis? How will the investment/transaction volume in major …

Read more

[Barometer Q12020] Real estate investor sentiment remains stable in first quarter – effects of pandemic yet to be seen
April 15, 2020

[Barometer Q12020] Real estate investor sentiment remains stable in first …

The most significant change we have seen in the first BrickVest barometer of 2020 is in geographic focus of real estate investment.

Read more

[Barometer Q42019] The taste of the moment: moderate-risk real estate investment strategies
January 9, 2020

[Barometer Q42019] The taste of the moment: moderate-risk real estate investment …

Almost six in ten of the 7,500 international investors surveyed by BrickVest in the last quarter of 2019 stated a preference for moderate risk …

Read more