Office and hotel sectors

Office and hotel sectors set to provide biggest investment opportunities

Institutional investors believe the office sector and the hotel and hospitality industry will offer the biggest real estate investment opportunities over the next 12 months, according to a new report.

The study by real estate investment platform BrickVest showed that 34% of institutional investors held this view regarding the office sector, with the same number opting for the hotel and hospitality industry.

Three in 10 institutional investors (31%) thought the industrial sector would present the biggest investment opportunities during this period, while one in five (19%) claimed the retail and leisure sector would be the best performer.

The research also revealed that 44% of respondents expected commercial property yields to increase in the next 12 months, while 22% believed they would decrease.

Furthermore, two in five (40%) planned to increase their allocation to European commercial real estate.

Emmanuel Lumineau, CEO at BrickVest, said: “Through our online investment platform we continue to see rising demand for high-quality commercial real estate, especially in the form of debt-like investment opportunities, which offer good risk-adjusted returns in a volatile market environment.

“We expect to see the highest level of volatility from the office sector as many international firms currently headquartered in the UK may put decisions on hold over their long-term office space requirements.

“If the UK no longer gives businesses access to the European market, they may need to spread their staff across multiple locations to more efficiently access both the UK and European market.”

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