Expectations among asset managers for real estate investment trusts are high, according to a survey of 100 investment professionals in the U...

Expectations among asset managers for real estate investment trusts are high, according to a survey of 100 investment professionals in the UK, France, Spain, Italy and Germany, by Datamonitor, a UK-based research firm. Four out of five asset managers expect a rise in demand for property investments. Half of the respondents indicate REITs have the potential to rival corporate bond funds. However, two thirds are unhappy with the efforts of their regulators to establish a REIT market in their jurisdiction. In Australia and the US, the established REIT structure has proved a fundamental element of economies due to their benefits to corporations, government and investors. However in Europe, France is the only country with an established REIT structure in place. REITs are still relatively unknown in Europe, although three quarters of European asset managers believe investors should have some exposure to property investment within their portfolio, according to Datamonitor Across Europe the asset management industry overwhelmingly expects to see strong growth in demand for property investments across all customer groups. Over four in five asset managers in Europe anticipate increasing demand in each of the mass market, high net worth and institutional client segments. Half expect growth of at least five per cent per annum over the next three years, according to the research. Some 50 per cent of asset managers surveyed by Datamonitor believe REITs have the potential to rival corporate bond funds. Almost two thirds of asset managers surveyed are unhappy with the efforts of their regulators to establish REITs structure in their jurisdiction, with one in five expressing particular dissatisfaction. Asset managers in Italy, followed by Germany then Spain, are the most dissatisfied. In Italy, just 15 per cent strongly agree that their regulator has done enough to support the development of REITs, compared to 35 per cent in Germany and 42 per cent in Spain.