Brexit uncertainty is the biggest challenge for institutional investors planning to increase their allocation to European commercial real estate over the next 12 months.
The finding was uncovered by BrickVest, a pan-European online crowd funding platform for real estate. It said that 60% of investors put Brexit as the biggest challenge, ahead of political uncertainty (46%), low global economic growth (37%) and rising inflation (25%). In all, it found that 40% of institutional investors are planning to increase their investment allocation in commercial real estate in Europe over the next 12 months. And 39% of investors think that Brexit will increase the number of investment opportunities.
BrickVest chief executive officer, Emmanuel Lumineau, commented: “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. 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.”