Â鶹ӳ»­

Investors are looking to pump a total of €48 bn into global real estate in 2016, an increase of almost 13% on last year, according to the latest Investment Intentions Survey published by INREV and ANREV, the European and Asian real estate fund investor organisations, and US-based Pension Real Estate Association (PREA).

Global investors are targeting an overall allocation of 10.3% over the next two years, compared to a current average of 9.4%. European investors are the most bullish about their prospects, with 64.8% expecting to increase their allocation compared to 42.3% of North Americans and 39.4% in the Asia-Pacific region.

Germany remains the most attractive European destination, followed by France and the UK, with the Netherlands and Belgium moving up the investor preference rankings from 8th to 4th and 11th to 5th respectively.

The industry associations INREV, ANREV and PREA, who published the survey, said investors were moving up the risk curve, with value-add moving ahead of core as the preferred investment style. Value-add accounted for 46.8% of investor intentions compared to 41.1% in 2015, while core moved from 41.1% to 39.4%. Opportunistic investments fell from 17.8% to 13.8%.

North American investors were far more likely to expect their portfolio to decrease in size over the next two years, with 34.8% citing this outcome compared to 12.1% of Asia Pacific investors and 11.1% of Europeans.
Joint ventures and club deals are set to be the preferred route to market in 2016, with nearly two-thirds (64.1%) of investors favouring this approach to the European market. Non-listed real estate funds, the most popular route in 2015, were in second place with direct investments third.