‘Investors favour German real estate over the UK’

The latest BrickVest barometer

GERMANY has overtaken the UK as the location of choice to invest in commercial real estate, according to a new study.

One in three (33 per cent) of commercial real estate investors have indicated that Germany is their preferred region to invest in, according to the latest BrickVest commercial property investment barometer.

This places it ahead of the UK, which was selected by a quarter (27 per cent) of respondents.

The UK saw a drop from 33 per cent to 31 per cent in the last quarter, and from 32 per cent in the same barometer 12 months ago.

Nearly one in five of the respondents (17 per cent) selected the US, which represents a slight increase from 12 months ago (16 per cent), while France was selected by 15 per cent, the same as the third quarter of last year.

The barometer also revealed that UK, French, German and US investors have become less favourable towards the UK since last year.

The study found that 45 per cent of UK, nearly a quarter (21 per cent) of US, a fifth (19 per cent) of French and 18 per cent of German investors indicated they favoured the UK this quarter, representing a decrease from last year across the board from 46 per cent, 26 per cent, 28 per cent and 21 per cent respectively.

Emmanuel Lumineau, CEO at BrickVest, said: “Our latest Barometer reveals that Germany has overtaken the UK as the location of choice to invest in commercial real estate. Investor risk appetite continues to rise as commercial real estate offers opportunities, especially in the form of debt like investments which offer good risk adjusted returns in a volatile market environment.”

The survey is based on a sample of 3,500 international BrickVest professional real estate investors who were polled online on a quarterly basis.

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