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Talks over the details of the UK’s exit from the European Union are not moving as swiftly as some would like it to do, but this is not affecting the confidence of a vast amount of institutional investors.

40 percent of institutional investors plan to increase their European commercial real estate holdings during the next 12 months according to a new study from BrickVest.

The study showed that 60 percent of institutional investors believe Brexit uncertainty will be the biggest challenge facing European investors in commercial real estate in the next year.

46 percent said political uncertainty would be the biggest challenge, while 37 percent felt it would be low economic growth.

Thirty-one percent expressed concern over rising interest rates and 25 percent feel it would be rising inflation.

22 percent believe increased regulation will be the biggest challenge for investors.

BrickVest’s said its research did highlight that Brexit could also present some European commercial real estate investment opportunities.

39 percent of investors felt that Brexit would increase the number of investment opportunities in European commercial property compared with just 22 percent who felt the number of investment opportunities would decrease.

CEO Emmanuel Lumineau, said: “Commercial real estate has seen increased inflows from institutional investors for a number of years now, as the asset class has become more and more mainstream. Clearly Brexit has created some uncertainties and will certainly present challenges for institutional real estate investors – however our research shows that European investors believe investment opportunities could increase. Since the vote in June last year, we’ve seen a huge increase in the number of investors joining the platform. We are experiencing strong levels of demand from investors for property as an asset class and it is clear that many of our users want to take advantage of the vote.”

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