Investors are expected to commit €48bn to real estate globally in 2016 – 13% more than in 2015, according to new research.

The Investment Intentions Survey, published by INREV, ANREV and PREA, found that allocations to real estate are increasing gradually. On an equally weighted basis, the average global investor is targeting an allocation of 10.3% over the next two years – 90 basis points above the current average allocation of 9.4%.

European investors show the highest real estate allocations at 11.4%, compared to 9.8% for Asia-Pacific investors and 9% for North Americas. Europe is also the favoured destination for capital, with investors looking to deploy 41.9% of their money there, compared with 35.5% to the US and 16.9% to Asia-Pacific. In Europe, the top two favoured countries were Germany and France.

The survey also revealed a shift in investment style preferences in favour of value add (46.8%) at the expense of core (39.4%) and opportunity (13.8%). Value add investments were favoured most in the UK (66.7%).

“Appetite for real estate seems to be as strong as ever regardless of investor domicile and this year’s survey highlights some interesting themes,” said Henri Vuong, INREV’s director of research and market information. “For example, the appeal of the big European cities remains undiminished. Despite pricing issues in places such as London, investors clearly feel the benefit of these mature and relatively liquid markets where it is easier to invest and therefore easier to avoid cash drag.”