Economic recovery in Germany has meant that the country is now considered the most-favoured location in Europe for unlisted real estate funds.
Retail property in the country ranked as the most attractive with 36 per cent of investor votes. The final position represents a large jump from the 2010 survey, when it was ranked outside the top ten, the European Association for Investors in Non-listed Real Estate vehicles (INREV) survey said on Tuesday.
France, the Nordics and the UK made up the top four picks for investors, the survey added.
"This is a dramatic change in sentiment," said Lonneke Loewik, the head of research at Amsterdam-based INREV, told Bloomberg. "Investors seem wary of higher property prices and a slower economic recovery in the U.K., but attracted by growing confidence in the German and other European markets."
Meanwhile, according to the results of the survey, 60 per cent of the investors and fund managers surveyed said while they believe that new financial rules will have an effect on the unlisted property market, 80 per cent will continue to invest in unlisted European property funds.
- Thursday 27 January 2011