Offices take property hotspot

Offices will provide the biggest property investment opportunities over the next 12 months, according to a new report.

The research, by property investment platform Brickvest, also reveals that 48 per cent of institutional investors are planning to increase their allocation to commercial real estate over the next 12 months.

Nearly two thirds – 64 per cent – of institutional investors believe the biggest opportunities to make a strong return will be found in the office sector. This represents a marked increase from the same poll of about 100 property-focused investors conducted last October, when just 20 per cent selected this option.

The latest study shows that twoinfive–42percent–of institutions believe that the industrial sector will present the biggest investment opportunities over the coming months, down from 44 per cent in October.

Around three in ten selected the hotel sector, up from 20 per cent last year, and a quarter cited the retail and leisure sector, down marginally from last year.

Meanwhile, the report revealed that just 8 per cent of investors are likely to decrease their allocation to commercial property over the next 12 months. Nearly two in three believe that the number of property investment opportunities will increase over the next five years.

Emmanuel Lumineau, chief executive at Brickvest, said: “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.

“Since the Brexit vote, we’ve seen a 72 per cent increase in the number of investors joining the platform.”