European real estate investors are set to focus more on Nordic property this year as a “haven from political risks”.
Nearly 95% said they would maintain or increase their allocation to the Nordics in 2017, the highest of any European market, according to a study commissioned by Intertrust, a fund services firm.
However, the UK and Germany are also set to continue to attract real estate investor capital, with 90% and 93% respectively planning to maintain or increase their allocation. This is despite the political risks presented by Brexit negotiations and the German Federal Election in September, Intertrust said.
The Italian real estate market came in last with only 16% of investors saying they would be increasing their allocation in 2017, with 22% likely to reduce their exposure.
Intertrust, which surveyed 71 respondents, said real estate appetite remained robust but that the findings suggested investors had limited appetite to move further up the risk curve by investing in sectors such as emerging markets.
Paul Lawrence, global head of funds at Intertrust, said: “As investors become increasingly reluctant to venture up the risk curve, the Nordic markets are enjoying greater popularity, particularly Sweden and Denmark, and are regarded by some in the market as a haven from the political risks currently present in the rest of Europe.”
©2017 funds europe
