German investors willing to invest more in secondary cities, and also increase proportion of hotel in portfolios
A recent study by Union Investment reveals that most European real estate investors have amended their investment strategies due to concerns that yield targets will become difficult to attain over the next three years. Professional investors in Europe, as well as the US and Asia are gradually moving higher up the risk curve.The report also stated that UK and German investors are showing greater willingness to increase the proportion of investment in secondary cities. Investors have also recognised that their performance can be stabilised by increasing the proportion of hotel investments or logistics properties, although since investment in this segment requires specialist knowledge it is not an option to all investor
Price pressure in European investment markets is continuing to keep real estate return expectations in check. Less than half of the professional property investors surveyed in Europe’s three largest economies believe they will achieve their yield targets in the next three years – and expectations are also subdued on a…

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