Commercial real estate investors are ditching London for Germany

 
Emma Haslett
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The capital's real estate sector is expected to flourish, despite investors eyeing Germany (Source: Getty)

Commercial real estate investors were more interested in putting their cash into bricks and mortar in Germany than property in the UK for the first time this quarter.

Some 33 per cent of 3,500 investors polled by property portal BrickVest said Germany was their preferred region to invest in, compared with 27 per cent who preferred the UK.

The figure is a reversal from the previous quarter, when 31 per cent of investors put the UK at the top of their list, while just 21 per cent preferred Germany.

Even British investors lost faith in the UK, with 45 per cent choosing the UK as their favoured region, down from 46 per cent during the same quarter last year. Meanwhile, 21 per cent of US investors, 19 per cent of French investors and 18 per cent of German investors favoured the UK this quarter, down from 26 per cent, 28 per cent and 21 per cent respectively.

However, separate figures have shown the capital's commercial real estate sector is expected to flourish this year, with commercial transactions in central London forecast to top £20bn this year, smashing forecasts.

“UK real estate, particularly prime assets with strong income streams in the capital, continues to appeal to a broad spectrum of international investors," said Stephen Down, from Savills, yesterday.

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