Strong global demand for real estate has resulted in investors taking a closer look at opportunities for property disposals than six months ago, according to Union Investment's bi-annual investor survey.
Strong global demand for real estate has resulted in investors taking a closer look at opportunities for property disposals than six months ago, according to Union Investment's bi-annual investor survey.
For 76% of German investors, 79% of British investors and 51% of French investors, the main priority over the next 12 months is to exploit market opportunities in order to streamline their portfolios or take profits, the survey found.
‘The turnover rate in European portfolios is set to increase because international capital is currently more willing to take significantly greater risks in Europe than local capital,’ said Olaf Janßen, head of real estate research at Hamburg-based Union Investment Real Estate.
Compared with summer 2014, the real estate investment climate is now bleaker in Germany, the UK and France. Due to a decline in the 'expectation' indicator, the Investment Climate Index fell by 1.8 points in Germany and stands at 68.1 out of a possible 100 points.
The mood among French investors deteriorated more significantly, with the index for the country falling by 2.9 points to 66.4. The UK index, meanwhile, confirmed the optimistic sentiment seen in that market. The index softened by just 0.3 points and recorded the highest level of all three European countries at 70.3 points.
Union Investment launched its Investment Climate Index of European property investors in 2005, with the survey taking place at six-month intervals since spring 2008. For the index, market research institute Ipsos conducted interviews in November and December 2014 with 164 property companies and institutional real estate investors in Germany, France and the UK.
