Investment Outlook 2020

Andrew Phipps

Head of EMEA Research

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Investment Outlook 2020

Who will be the risk-takers?

Although weak economic growth and historically low yields are likely to continue in 2020, there are still opportunities to seek higher returns – and an increasing number of investors are willing to try. However, any high-yield property asset will come with risks that need to be understood, so investment intelligence is more important than ever.

In our new Investment Outlook Report, we take a look at the key trends in store for 2020, including:

Private equity dominates high-yield

Private equity firms have spent 58% of their capital on non-CBD offices so far this year: retail warehouses and shopping centres are a distant second and third, with around a 12% share each. If current trends continue, this investment sector will be the leading source of capital for high-yield investment in 2020.

Which investments?

Investors seem to prefer higher-risk office purchases to higher-risk retail, as office risk factors tend to be easier to manage. Non-CBD (Central Business District) offices remain the most likely targets – though faltering retail assets should also provide good opportunities for investors looking to repurpose or redevelop.

Location is key

The UK will continue to be the largest source of high-yield deals, but investors will increasingly look further afield in Europe, with the Saxon Triangle and northern Germany becoming top picks. As high yields have become harder to find in Germany and France, there has also been a steady increase in investment activity in The Netherlands, as well as more sporadic investment in Italy and Spain.

Our Investment Outlook 2020 report also looks at the various risk factors involved in beating low yields – as well as a range of data showing how investors are thinking.

Download now to find out how investors can react to 2020’s changing landscape.


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