Riskier assets in stable countries could present investors with the best opportunity to make substantial returns this year, it has been suggested.
According to Stuart Fiertz, co-founder of Cheyne Capital Management, 2011 will be characterised by prime properties yielding less and emerging markets losing their stability.
Speaking to Bloomberg, Mr Fiertz noted that assets in the UK and Germany in particular are becoming more attractive to buyers. He explained that this is because they are politically stable and "the rules are respected".
"It is becoming more important to switch attention away from trophy assets in central business districts, where yields are falling," Mr Fiertz said.
The latest research from CB Richard Ellis (CBRE) said that investor sentiment in Central and Eastern Europe is improving, with the first two months of 2011 seeing EUR 1.2 billion spent on commercial acquisitions.
CBRE added that towards the end of 2010 investment activity in South-Eastern Europe has also started to improve.