Capital growth most important to property investors

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 the most important factor followed by 33% seeking a high yield.

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.

Ray Withers, chief executive of Property Frontiers said: “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.”

Richard Gordon of UKPIS commented on the report: “Whilst a good yield is required to make any investment work, this report shows the importance investors rightly put on a solid, long term investment. The real money in property is made in its capital appreciation over the medium to long term, not from a higher yield in the shorter term.