Demographic change will define the 2020s and ensure strong demand for real estate

Demographic change will increase the demand for secure, stable-valued real estate investment assets, and structural parameters will ensure that rates of return on the capital markets stay low, according to a new market intelligence update from Warburg-HIH Invest Real Estate (Warburg-HIH Invest) that provides a compact snapshot of national and international investment and occupier markets.

Professor Dr. Felix Schindler, head of research at Warburg-HIH Invest, said, “Real estate will remain a sought-after asset class in the 2020s.”

The year 2019 concluded with a spectacular year-end rally, setting new records of various kinds on the real estate markets — despite or perhaps even because of the current economic and geopolitical jitters.

“These parameters and the low interest rate environment will carry us through the early years of the new decade and will probably ensure that prime yields will remain low on the real estate markets, in some cases below 3.0 pe