[Barometer Q42019] The taste of the moment: moderate-risk real estate investment strategiesResearch | January 9, 2020
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 strategies at this time (“value-add” or equivalent strategies). This figure is up 6% year-on-year and is the highest since the launch of the BrickVest Barometer, in January 2017. For the first time, income has caught up with capital growth as a principal investment objective (with each being indicated by 40% of investors).
The Barometer also confirms a trend that began 12 months ago: a strong interest in more liquid investments, which can be withdrawn in the event of a market downturn. With 11% of responses, liquidity as a principal investment objective has increased considerably and is at an all-time high.
In terms of geographical preference, demand changed little over the year. The United Kingdom remains the preferred destination for international investors (32%), ahead of Germany (2%). France (17%) and the United States (17 %) share third place on the podium.
Thomas Schneider, BrickVest, commented: “Moderation of risk and the importance of liquidity were the main themes for commercial real estate financing at the end of 2019 and will certainly be important in 2020. In the face of Brexit-related uncertainties and a possible change in the market cycle, investors remain active, but cautious”
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.