Three in five high net worth investors plan to significantly increase their overall investment allocation to real estate in the next 12 months.
According to new research by ASK Partners, 58% of surveyed high net worth investors stated that they are looking to increase real estate investing.
ASK’s research also revealed that 18% of high net worth investors plan to increase their current real estate investment risk tolerance while 17% plan to decrease.
Respondents said they believed life sciences, warehouses and logistics and co-living would generate the best returns over the next 12 months. Appetite for retail was significantly lower.
The research found that high net worth investors believed that higher interest rates, changes in political leadership, increased regulation and changes to the tax system were the biggest challenges facing the industry.
Investors suggested that the top three property priorities for the upcoming government should be alleviating restrictions on conversions and brownfield sites; zoning and land use policies and incentivisation for affordable housing.
Respondents said the current government has failed to deal with planning restrictions, the impact of affordability and a dwindling UK construction workforce.
Daniel Austin, chief executive and co-founder at ASK Partners, said: “Our research shows that investors plan to significantly boost their real estate investments in the next 12 months, which is a really positive sign for capital investing in the sector and shows the strength of real estate debt as an asset class.”
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