Urban industrial & logistics, essential retail, affordable housing and real estate debt likely to be safest havens in 2023

While 2023 may prove challenging for all investors, in the context of global market turbulence, Savills Investment Management (Savills IM) sees select opportunities in asset classes with strong long-term fundamentals such as urban industrial and logistics, affordable housing and essential retail.

Savills IM identifies the threats to the near-term macro picture, the most notable being rising inflation, interest rates and recessionary risks impacting investment and occupier markets.

Interest rates will impact those with high levels of debt, with £60 billion (€70 billion/$87 billion) of outstanding loans due to be refinanced in the U.K. within the next two years. The picture is similar across many other markets. Occupier markets are also likely to experience instability, as reduced growth and the threat of recession increases the likelihood of occupier distress.

However, those who prepare now will be well positioned to benefit when the next upturn arrives. Those