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Portugal, Italy, Ireland, Greece and Spain once again offer value-add opportunities for real estate investors, according to a report by German listed real estate company Patrizia Immobilien.

'The largely completed value adjustments in the commercial real estate markets and the low level of construction activity in the office sector have already made some PIIGS locations, such as Dublin, appealing again for investors,' according to Marcus Cieleback, author of the study and head of research at Patrizia Immobilien.

Since the beginning of the euro crisis, many investors had been avoiding the PIIGS countries, as the risk of loss appeared too high due to the weak economic situation and their high debt burden. Following political and financial action, the risk of a breakup of the euro area has been averted at this time, the report claims.

While the yields in the capital markets of the PIIGS countries are now again approaching those of the rest of the euro area, there has been no reduction in the yield difference in the real estate markets. 'This has little to do with the fundamental trend in the real estate markets but rather with incorrect price expectations as a result of subjective and emotional factors. Many institutional investors are therefore missing out on opportunities,' says Cieleback.

Ireland and the office and retail market in Dublin are much less dependent on the trends in the eurozone than Italy, Spain and Portugal, Cieleback added. 'Madrid, Milan and Lisbon are therefore more interesting for risk-taking investors, while the commercial real estate market in Dublin should attract an increasing number of traditional core investors starting in the second half of 2014.'