British, German and French investors all expect real estate’s percentage of total investment to grow in the next 12 months, according to BrickVest’s second quarter Barometer.
Real estate investment volume, as a share of total assets under management (AUM), saw remarkable increases expected over the next 12 months by British, German and French respondents in our most recent survey of investors. Since we started our Barometer in January 2017, real estate’s expected share of AUM has fluctuated around the 3% mark, on average. However, in our most recent survey, British respondents expected real estate’s share to be over 5%, while German and French investors expect it to be closer to 10%. Only US respondents saw real estate reducing its share of total investment over the coming year.
Meanwhile, risk appetite among investors has remained more or less unchanged in Q2 2020, with over half of respondents putting themselves squarely into the “moderate appetite for risk” category, followed by low appetite at 27% and high appetite at 22%. British investors do appear to buck this trend however, with a considerable year-on-year jump in the high-risk category, from 22% to 40%.
Around six-in-ten people express a greater focus on investment opportunities located in primary markets, such as capital cities, rather than in secondary markets. This has remained essentially stable since we started our Barometer in January 2017 and is unsurprising, as a preference for cities ties back to the trend towards more conservative attitudes towards risk. However, we have recently seen a very slight increase in interest in assets in secondary markets, particularly among French and US investors. Should the COVID19 pandemic result in a longer-term shift towards remote working, we may see this trend grow.
Capital growth and income remain the major objectives for investment, with liquidity and tax optimisation both slowly climbing towards a 10% share of overall investors’ motivation over the lifetime of our Barometer, but not yet there.
In terms of favoured investment destinations, the US has gained several percentage points year-on-year, to be selected by 20% of those surveyed, to the detriment of France (17%) and Germany (23%). UK remains top of the list, chosen by 30% of respondents.
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About the BrickVest real asset investment Barometer
BrickVest brings together real asset developers, investors and lenders within a digital marketplace. More than 7000 investors and 1100 real estate firms use our services.
The BrickVest barometer is a quarterly aggregation of the data gathered by BrickVest from surveying investors and sponsors registered on our platforms. The barometer reveals and tracks investor sentiment regarding the real estate investment market, including risk appetite, preferred locations for investment, investment objectives and more.