With the property markets now under-going correction from their highs in 2006-2007 across most of the developed world, and savings rates at an all-time low, cash-rich investors are seeking returns on their capital like never before. Gone are the days of investments baked with the expectation of capital growth, investments now need to “stack up” in terms of cashflow from day 1. That’s not to say capital values are being ignored, far from it. Investors increasingly seek stable investments that provide a measurable and regular return. So markets should be in some sort of equilibrium in terms of supply versus demand, and capital values holding steady. In many ways then, conditions are back to normal in many respects for serious portfolio landlords.

So where are yield investors looking today? Working on the ProVenture team, we get to talk to yield investors every day from across the world and it is interesting to pick up on trends in their strategies. We hear about where investors have placed their hard-earned cash in the past, and where and why they are looking to invest in the coming years. Inevitably, many of the investors we speak to are focused on Germany as a place to invest for the coming years as this is our main area of operation as property consultants. But increasingly, we discuss investments in eastern Europe, other parts of western Europe and the USA as viable investment locations.

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