For the first time since the financial crisis, investors’ appetite for risk appears to be growing, according to the INREV Investment Intentions Survey for 2013.

For the first time since the financial crisis, investors’ appetite for risk appears to be growing, according to the INREV Investment Intentions Survey for 2013.

The number of investors with a preference for value-added funds doubled to 43% from 21.9% in 2012. This growth in popularity comes predominantly from large institutional investors in Germany and the Nordic region.

Nonetheless, core funds remain the dominant style with 50% of investors expressing a preference for them.

'These results are interesting. They seem to indicate that investors are beginning to look for opportunities further up the risk Curve as opposed to concentrating solely on core, which has dominated the market for the last couple of years,' said Casper Hesp, INREV Director Research and Market Information.

Dutch investors, while still driven by core funds, have also reduced their preference for core from 91.7% last year to 72.7% now, and predicted allocations to value-added and opportunity funds are up to 18.2% and 9.1% respectively.

The survey results also show that a majority (55.9%) of investors expect to increase their commitment to real estate
as part of their overall multi-asset portfolio.