Spain set to make a comeback in 2014: INREV

Spain is the most popular of the ‘club Med’ economies for investors in European real estate, according to the latest INREV Investment Intentions Survey.

According to the survey, 41.7% of fund of funds managers, 31.3% of fund managers and 22.6% of investors expect to invest in Spain this year.

In general, however, Germany, France and the UK remain the most sought-after investment spots in 2014. Buoyed by strong support from domestic investors, Germany remains the top European country, with 58.3% of investors and 70.5% of fund managers expecting to invest there this year. The UK is the preferred location for cross-border investment.

UK offices is the most popular country and sector combination preferred by 45% of investors. Then comes the French offices sector (favoured by 44% of investors), followed by Germany offices (preferred by 43% of investors).

Retail was the most popular sector overall for investors and fund managers, while there was a noticeable increase in interest in residential, suggesting that this sector is proving its viability.

Investors expecting to reduce their allocation to non-listed real estate has nearly halved, dropping from 30.5% in 2013 to 18.5%. With the proportion of investors wishing to increase their allocation to non-listed real estate funds remaining almost unchanged from last year, the result is a higher net balance in favour of non-listed funds - notably from smaller investors - bucking the downward trend of the previous three years.