Investors Drawn to Safety and Comfort of Home Markets

An increasing number of global commercial property investors have retreated back to their home country to find the safest returns, it has been claimed. The Royal Institution of Chartered Surveyors (RICS) said that the downturn in many overseas markets had forced many investors back home....

An increasing number of global commercial property investors have retreated back to their home country to find the safest returns, it has been claimed. The Royal Institution of Chartered Surveyors (RICS) said that the downturn in many overseas markets had forced many investors back home.

The news comes after a CB Richard Ellis report showed that cross-regional activity dropped by 83 per cent in 2009 compared to the market's peak in 2006 and 2007. And Simon Rubinsohn, chief economist at Rics, believes that the comfort of home markets acts as a "safe haven" for investors.

Inevitably in a weak market, international flows tend to be the first area where the crisis manifests itself," he added. "People tend to retreat; they tend to invest in things they know about and perhaps they feel more confident [about] and believe there is more substance to."

However, the news contrasts with recent comments made by the Investment Property Databank which said that institutional European pooled property funds have completed a marked recovery over the 12 months to June 2010.

- Monday 11 October 2010

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