Real estate holds firm in uncertain times

Murmurs of sinking property values have done little to shake real estate’s reputation as a secure investment in unstable times.

In Preqin’s Investor Outlook H2 2016, a survey of 162 real estate investors showed that despite only 13% of respondents believing that returns on their portfolio will rise in the coming year and 39% thinking they will fall, 31% expect to increase their capital commitments in property in the same time.

Antonia Storey, research manager for institutional investors at Preqin, said that considering the strength of property in the past year, real estate performing worse in the coming year does not mean it will perform badly.

She said: “Distributions from private real estate funds over the past 12 months have been strong and so investors have remained satisfied with their real estate investments.”

With volatility creating opportunity, over half of respondents said they are targeting opportunistic and value-added assets. Nearly 10% are also going after distressed property, up from 5% in December.

“Real estate performing worse next year does not mean it will perform badly

EGA_030916_Briefing APP

Click to enlarge

Other News

Greater London’s planning application hotspots

EG has picked out the top eight London postcodes that have seen increases in planning applications. The hotspots, located mainly across outer London, averaged just three… Read more »

G Global

Blockade means uncertainty for future of Qatari investment

There can be absolutely no doubt about the extent of Qatar’s heavy investment abroad in recent years. Since 2004 the gas-rich Gulf state has invested… Read more »

G Global

UK owners still dominate London office ownership

Cash from around the world has poured into the capital’s business districts in recent years, but domestic owners still rule the roost. Looking at office… Read more »

G Global