European property investors have developed a higher tolerance for risk in 2013, leading to a rise in value-add and opportunistic strategies, according to a report from Invesco Real Estate.
Positive economic data from many European countries is driving the trend, according to Invesco's 2013 H2 outlook, published today.
“As Europe continues its gradual recovery we continue to believe real estate offers compelling reasons to invest, and growing risk appetite among investors in this asset class appears to reflect that,” said Kim Politzer, director – European research at Invesco Real Estate. “Real estate’s income characteristics can make it an attractive alternative to fixed-income products right now, while improving economic fundamentals also have the potential to deliver an additional growth element."
The report also finds that core logistics are likely to outperform other sectors over the next five years, while investor interest in alternatives is set to grow steeply thanks to the strong performance of residential property and hotels this year.