Where to invest in 2023, according to savvy property investors

UK property investors are making a significant shift towards adopting opportunistic strategy for 2023, according to a new report.

The Investors Intentions Survey, conducted by global real estate advisor CBRE, showed that, against the backdrop of economic instability, UK Investors were gearing up for a new strategic approach.

Results showed a marked increase in uptake of opportunistic strategy, from 11 per cent in 2022 to 35 per cent in 2023, with value-add being the second most popular strategy at 25 per cent – a fall from 42 per cent the previous year. 

Residential was the preferred sector, closely followed by logistics at 30 per cent and 29 per cent respectively.

Despite tougher economic conditions, ESG continues to be at the forefront of investors’ minds, according to the report, with 88 per cent of UK investors affirming that ESG criteria would continue to be adopted in all investment decisions this year.

Jennet Siebrits, Head of UK research at CBRE said: “The greatest current challenges facing real estate investment are perceived to be fear of recession, higher and/or more persistent inflation, and shifts in credit availability & loan terms.

 “In this environment it might be expected that investors would prefer core assets – yet our survey results indicate opportunistic and value-add strategies are the preferred approach, whist core and core plus were preferred by just 12 per cent of respondents each.

 “Economic Social and Governance criteria continue to be at the forefront of investors’ minds, despite macroeconomic headwinds and a challenging geopolitical landscape. We found the preferred method for implementing ESG strategies to be upgrading existing assets. Whilst some stated they would also sell properties that do not meet their ESG criteria, there was more emphasis on upgrading than on divesting real estate.”