Investors are moving to secondary cities in search of better returns, according to a Union Investment survey.

Investors are moving to secondary cities in search of better returns, according to a Union Investment survey.

Based on interviews with 167 investors in Germany, France and the UK, the survey found that half of investors plan to increase the proportion of secondary cities in their portfolios in the next 12 months.

Along with the three main markets, Sweden, Spain and the Netherlands were being considered for their secondary cities. Return on investment is now the key motivator for 60% of investors, after years of focussing on security.

Strong demand is also driving new selling strategies. ‘Opportunities for selling in markets experiencing high demand are being seized much more actively than in recent years,’ said Frank Billand of the Union Investment management team.