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RESIDENTIAL & RETIREMENT SECTORS GAINING GROUND AMONG EUROPEAN REAL ESTATE INVESTMENT OPPORTUNITIES, ACCORDING TO RESEARCH

  • Property-focussed institutional investors believe that the logistics (44%), retirement (37%) and residential (33%) sectors are the biggest European real estate investment opportunities over the next 12 months
  • 44% said that in the past the process was too slow when investing in commercial real estate
  • 20% would use a direct investment platform like BrickVest
  • 32% also cite illiquidity and the lack of a secondary market of the market as an ongoing concern for not investing in commercial real estate in the past
  • In the next few months BrickVest will give investors access to a secondary market in institutional-quality commercial real estate
  • Investors believe the biggest challenges facing European commercial real estate over the next 12 months will be Brexit uncertainty (63%) and low global economic growth (38%)

More than two fifths (44%) of property-focussed institutional investors believe that the logistics sector will present the biggest European real estate investment opportunity over the next 12 months, according to new research by the real estate investment platform BrickVest.

Almost four in ten (37%) highlighted non-traditional sectors such as retirement homes while a third (33%) believe residential would present the biggest opportunity.

The research showed that a quarter (27%) cited retail/shopping centres while a fifth (20%) said offices and hotels equally.

The research showed that one in five (20%) would access European commercial real estate investment opportunities through a direct investment platform such as BrickVest. However dominating this channel are REITs with more than two thirds (67%) of institutional investors saying they would use them while three fifths (60%) cited property funds. This is despite £1.4 billion2 being pulled from UK property funds post-Brexit.

The research also looked at the factors that have deterred investors from investing in commercial real estate in the past. Two in five (44%) highlighted that the process was too slow. A third (32%) cited the illiquidity of the market caused by not having an efficient secondary market.

BrickVest is determined to address the illiquidity of the market and will be providing access to a secondary market in institutional-quality real estate in the next few months. The secondary market will make real estate investments tradable and enable users to offer properties to other investors on more favourable terms.

Indeed, when BrickVest’s users were asked what they were looking to achieve by investing through the platform, liquidity was a key focus; more than a third (36%) suggested regular income was a motivation.

BrickVest’s research also showed that institutional investors believe the biggest challenge facing European commercial real estate over the next 12 months will be Brexit uncertainty, cited by 63% of respondents. A further two in five (38%) institutional investors thought that low global economic growth would be the biggest challenge facing European investors in commercial real estate. A third (32%) thought the emergence of a property bubble would be the biggest challenge.

Emmanuel Lumineau, CEO at BrickVest, commented: “The research shows that the logistics sector remains front of mind for institutional investors, but also that non-traditional sectors like retirement homes are catching up. Speed of the investment process and access to liquidity have put off investors in the past – BrickVest is different to other real estate investment offerings in that we put liquidity at the core of what we do. To generate liquidity in the market you need a great number of buyers and sellers who trust that the market is fair and regulated, with transparent pricing. BrickVest offers the full spectrum of institutional investment management services: from complete deal underwriting and structuring to investment management, rating and monitoring.

“In a background of Brexit, income is considered a priority and we prefer investments that will provide strong diversification and increased stability throughout their hold period. We have seen plenty of appetite from investors and it is clear that many of our users want to take advantage of the Brexit vote with the confidence that they have a secondary marketplace to trade.”

BrickVest allows investors to invest low minimum amounts in institutional quality real estate that previously was only accessible to large institutions such as pension funds, insurance companies and large family offices. BrickVest offers a range of investment opportunities allowing investors to select an opportunity based on the preferred asset class, geography and return profile. BrickVest has unlocked the ability to combine unparalleled ease of access and transparency while providing an institutional-level investment platform with increased liquidity, supported by reputable fund service providers.

European investors interested in signing up and viewing BrickVest’s pan-European real estate investment offering can do so on https://brickvest.com/en/.