Capital growth is the most important consideration for real estate investors with a third of potential buyers regarding the UK as the top location for purchasing property, according to a new survey.
The findings of the 2011 Property Frontiers’ Investor Survey found that 46% of respondents said capital growth was of the upmost importance followed closely by high yield at 33% and security at 11%.
In terms of global destinations, the UK, perceived as a safe haven for real estate investment, was the top choice for nearly a third of potential buyers followed by the United States, Brazil and Turkey.
Traditional lifestyle favourites including France, Spain and Portugal did rank within the top 10 destinations however a number of Asian nations including Malaysia, China and Singapore also ranked highly.
“Our annual investor survey is extremely useful for us in assessing the state of the market. As a customer focussed organisation, we try our hardest to listen to our clients’ and the market needs and offer investments that make sound fundamental sense,” said Ray Withers, chief executive of Property Frontiers.
“Over the past year we have seen a huge increase in demand for UK property especially buy to let so we are not surprised to see this level of interest continue into 2012 and whilst we remain in uncertain economic times, security and capital growth will prevail over riskier, often higher yielding opportunities,” he added.
He also pointed out that despite fears of a double dip recession, the investment sector in 2011 has seen signs of life with over half of survey respondents revealing that they had made an investment in the last 12 months with the UK and US.
“The 2011 Investor Survey certainly paints a positive picture for the market in 2012. Investors, although maybe cautious, still believe in the merits of bricks and mortar and other alternative asset classes such as student accommodation, hotels or eco investments,” said Withers.