Expectations of a deluge of distressed property coming onto the market in coming years is keeping transaction levels down as investors wait patiently on the sidelines, it has been claimed.
IPE has reported that an increasing number of real estate investors in the US are becoming "more diligent" when it comes to parting with their money and waiting for the right opportunities to present themselves.
However, this is not to suggest that investors have fled the market completely, rather they have just become more "risk aware", the news provider claimed.
Kiran Patel, global head of research, strategy, and business development at AXA Real Estate Investment Managers, has noted the same trend.
"Most investors are seeking core, which implies low returns, but you will still find investors going up the risk scale, because they have liabilities to cover," he said.
"Our advice to clients: there are opportunities, there is no need to panic and rush in, but you need to be mindful of how you spread the risk management."