AEW foresees compelling opportunities emerging after current storm

In its 2021 European real estate outlook, “After the Storm,” AEW explores how investors can best navigate out of the current crisis. Despite the recent news of a potential vaccine, 2021 looks to be a year characterized by a slow recovery hindered by both COVID-19’s impact on the wider economy together with the latent existing headwinds of unresolved trade frictions and political uncertainties. The report highlights a return of nonperforming loans (NPL) as the COVID-19 crisis drives a deterioration in consumer and corporate credit quality. As a result of upcoming NPL portfolio sales, AEW sees clear opportunities in mispriced, good-quality secondary assets across the board. Prime retail should also prove attractive in 2021 following recent repricing and the pending shift to more sustainable, turnover-based rents.

Commenting on the report Hans Vrensen, head of research and strategy at AEW, commented, “When we issued our ‘Calm before the Storm’ outlook for 2020, we fu